Do You Have a Plan in Case Social Security Cuts Happen?
For years now, rumors have been flying that Social Security is on the verge of going away. But thankfully, those rumors are bogus.
Social Security is not in danger of disappearing completely for one giant reason -- its primary source of funding is payroll tax revenue. And as long as workers continue to get taxed on their earnings to fund the program, Social Security can continue to exist.
That doesn't mean that Social Security will be able to afford to keep up with scheduled benefits, though. In the coming years, the program is expected to owe more to retired and retiring seniors than what it collects via labor force contributions. And while Social Security can tap its trust funds to keep up with scheduled benefits for a while, in time, those funds are apt to run dry.
Source Fool.com
