Could This New Retirement Trend Actually Help Social Security?
A new survey from Voya Financial (NYSE: VOYA) indicates that 54% of employed Americans now plan to work in retirement. For many, their motivation is to shore up their finances and improve preparedness for market volatility. While continuing to work goes against the traditional definition of retirement, the trend could be good for Social Security, considering the program is projected to run out of surplus funds in less than 15 years.
The future of Social Security has been uncertain for a long time. At issue is the way funds flow in and out. When Social Security payroll taxes are deducted from your paycheck, they're not earmarked for you and set aside for the future. They're used to pay out benefits to the current generation of retirees. That system works as long as the incoming revenue from taxes is higher than the expenses of today's beneficiaries.
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Source Fool.com
