7 Reasons a 23% Social Security Benefit Cut Is on the Way in 12 Years
For the vast majority of retirees, Social Security is an indispensable source of income that's needed to make ends meet. According to the Center on Budget and Policy Priorities, America's top retirement program is responsible for pulling nearly 22.5 million people out of poverty each year, and 16.1 million of them are aged 65 and over.
Unfortunately, this highly successful social program is also in some serious trouble that can no longer be swept under the rug. The latest annual Social Security Board of Trustees report estimates the program is facing a $20.4 trillion cash shortfall through 2096. More importantly, the Trustees report forecasts an exhaustion of the Old-Age and Survivors Trust's (OASI) asset reserves (i.e., the excess cash built up since inception) by 2034.
Although Social Security is in no danger of becoming insolvent, the current path of the program portends a 23% benefit cut is on the way for OASI recipients in just 12 years. The OASI is what provides benefits to more than 48 million retired workers.
Source Fool.com
