What Would a Joe Biden Presidency Mean for Social Security?
Just in case 2020 wasn't giving folks enough to worry about, this is your reminder that our nation's most-successful social program, Social Security, is expected to face serious financial troubles in the very near future.
Every year, the Social Security Board of Trustees releases an annual report highlighting the short-term (10-year) and long-term (75-year) outlook for the program. In each of the past 35 years, the Trustees report has cautioned that there wouldn't be enough revenue coming in over the long term to sustain the current payout schedule, inclusive of cost-of-living adjustments. As of the 2020 report, Social Security's unfunded obligations had ballooned to $16.8 trillion.
According to the Trustees' projections, if lawmakers fail to act by raising additional revenue and/or cutting expenditures, Social Security will completely exhaust its $2.9 trillion in asset reserves (i.e., net cash surpluses built up since inception) by 2035, at which point across-the-board benefit cuts of up to 24% may be necessary to sustain payouts for retired workers.
Source Fool.com
