Rising National Debt Isn't as Big of a Problem for Social Security as You Might Think
For the past eight decades, Social Security has been providing a financial foundation for our nation's retired workforce. Today, over 22 million people are lifted out of poverty as a result of their monthly payout, and more than 15 million of these folks are retired workers. If Social Security didn't exist, elderly poverty rates would soar and the long-term disabled would also be in pretty big financial trouble. In other words, the importance of this program can't be overstated enough.
However, it's also a program that's facing some very real challenges in the years that lie ahead. According to the newest annual report from the Social Security Board of Trustees, the program will begin spending more money than it collects in 2020 and the nearly $2.9 trillion currently in asset reserves will be completely exhausted by the year 2035. Unless additional revenue is generated and/or expenditure cuts made, an across-the-board benefit reduction of up to 23% could await retired workers.
Image source: Getty Images.
Quelle Fool.com
