Lawmakers Might Increase Social Security's Full Retirement Age to Avoid Benefit Cuts. Here's How That Could Hurt Today's Workers Big Time
Social Security is not in the best financial shape. The program gets the bulk of its funding from payroll taxes. But in the coming years, that revenue stream is expected to shrink as baby boomers exit the workforce in droves.
Social Security can tap its trust funds to keep up with scheduled benefits for a period of time. But once those trust funds run dry, benefit cuts may have to happen. And recent projections call for a trust fund depletion date of 2034, which isn't so far away.
Of course, it's in lawmakers' best interest to try to avoid benefit cuts and the senior poverty crisis they have the potential to cause. To that end, several solutions have been brought up to prevent that unwanted scenario.
Source Fool.com
