3 Ways the Coronavirus Strips Social Security of Funding

For years, experts have warned that Social Security is in serious financial trouble. In fact, the most recent projections from the Social Security trustees indicated the program's trust fund will run short in 2035, requiring a major cut to benefits. And the coronavirus isn't helping the situation.

In fact, due to the COVID-19 economic fallout, the University of Pennsylvania Wharton School estimates the trust fund will be depleted as much as two years sooner than expected if there's a V-shaped economic recovery, or four years sooner in a U-shaped recovery. A V-shaped recovery would mean a sharp rise in economic activity with measures of economic health returning quickly to a prior peak; a U-shaped recovery works similarly, but economic indicators linger longer at the bottom before returning to prior peaks. 

While no one can predict exactly how quickly the economy will recover, it's easy to see why COVID-19 will hurt Social Security's future. In fact, Penn Wharton has identified three ways this will happen. 

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Source Fool.com