Would the GOP Actually Cut Social Security Benefits?
There's arguably no program in the U.S. more important than Social Security when it comes to the financial well-being of retirees. More than 60% lean on their monthly stipend for at least half of their income, with about a third reliant on Social Security for at least 90% of what they bring home each month. Without this critical program, millions of seniors would probably be struggling to make ends meet.
But Social Security itself isn't exactly on solid footing. The 2017 report from the Social Security Board of Trustees estimates that by 2022 the program will begin paying out more in benefits than it's generating in revenue. This is a result of baby boomers who are leaving the workforce and pushing the worker-to-beneficiary ratio lower. It's also happening because of lengthening life expectancies. By 2034, the program's $3 trillion in asset reserves is forecast to be completely gone. Should Congress fail to stem the program's seemingly imminent decline, an across-the-board cut of up to 23% on current and future retirees' benefits may be needed to sustain payouts through 2091.
Image source: Getty Images.
Source: Fool.com
