Here's What Needs to Happen to Avoid a 24% Social Security Benefits Cut
Both current and future retirees need to be aware that time is running out before Social Security benefits could be reduced substantially. Social Security's trust fund is projected to run dry in 2035 or earlier, which means that by the time today's 52-year-olds reach their full retirement age, they could get much smaller benefits than they were promised.
How much smaller? If the trust fund is depleted and retirement benefits can be paid out of only current payroll taxes, retirees are looking at a 24% benefits cut. With the average Social Security benefit already providing just $1,503 per month, such a substantial decrease could lead to a major decline in quality of life.
The good news is there are some possible solutions to stop this from happening. But the bad news is there are really only three options -- all of which are politically unpopular. Here are the three possible fixes to Social Security's financial troubles.
Source Fool.com
