Nearly 40% of Near-Retirees Don't Realize Social Security May Be in Trouble
Social Security serves as a financial lifeline for millions of older Americans. But the program is facing some financial challenges that, if left unaddressed, could result in a serious revenue shortfall down the line.
Where does that leave beneficiaries? According to the most recent Trustees Report, seniors on Social Security could see a 20% reduction in scheduled benefits come 2035. And similarly, future beneficiaries could wind up collecting 20% less than the amount they'd otherwise be entitled to based on their earnings records.
Of course, that reduction is by no means set in stone. There's a good chance that lawmakers will intervene with a fix, thereby preventing future benefits from taking such a monumental hit. But there's no guarantee that will happen, either, and so those expecting to rely heavily on Social Security should brace for the possibility that benefits may be reduced in the not-so-distant future -- whether by 20% or a different figure.
Source Fool.com
