How Much Extra Tax Is Needed to Fix Social Security?
Social Security is a go-to safety net during retirement for tens of millions of seniors. Even though the Social Security Administration (SSA) suggests that it's only designed to replace about 40% of the average retired workers' wages, most retirees lean on the program for much more. According to SSA data, 62% of elderly beneficiaries count on their monthly check for at least half of their income, with 34% leaning on Social Security for 90% or more.
Unfortunately, the program that seniors have come to rely on so heavily over the past couple of decades is nearing what can arguably be described as its biggest hurdle in history. Due to the ongoing retirement of baby boomers, which is weighing on the worker-to-beneficiary ratio, and a steady lengthening of life expectancies, Social Security's coffers are soon expected to be drained.
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Source: Fool.com
