50% of Pre-Retirees Think Social Security Will Be a Major Source of Senior Income, and That's a Problem
Millions of seniors today count on Social Security to pay their bills. In fact, 64% of retirees consider it a major source of income, according to a new survey by the Society of Actuaries. But 50% of pre-retirees may be in for a huge financial shock for one big reason: They expect the same out of Social Security at a time when future benefit cuts are very much on the table.
In April, the Social Security Trustees revealed that if lawmakers don't come up with a solution to pump more money into the program, benefit cuts may be on the table as early as 2035, the year Social Security is expected to exhaust its trust funds. Those trust funds can be tapped to bridge the gap when Social Security owes more in benefits than it collects in revenue, and that's the exact situation it expects to be in as more and more baby boomers exit the workforce in the coming years. But once those trust funds run dry, scheduled benefits won't be payable.
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Source Fool.com
