If Social Security Isn't Fixed, Here's How Much Benefits Would Fall in 2035
Social Security retirement benefits have become a vital income source for most retirees, despite the fact that the monthly amount isn't very big. With an average benefit of just $1,503 per month in 2020, this money barely keeps retirees above the poverty level unless they have supplementary income.
That's why it's such bad news that benefit cuts are on the horizon if something doesn't change soon. In fact, the most recent report from the Social Security trustees suggests that the combined trust funds supporting retirement, survivors, and disability benefits could run dry in 2035. And there's reason to be concerned the reserve funds will be depleted even sooner, thanks to coronavirus.
If that happens, there'll still be money to pay some portion of benefits since the program will continue collecting payroll taxes. But tax revenue isn't enough to pay out all that has been promised, so a big benefits cut would have to happen unless lawmakers make some changes to the current system. But just how big would that cut be?
Source Fool.com
