Is Wage Inequality Hurting Social Security?
Millions of seniors today rely heavily on Social Security to cover their living expenses. That's in spite of the fact that beneficiaries have been losing buyer power for years as inflation has outpaced Social Security raises.
Making matters worse is the potential for Social Security cuts in the not-so-distant future. The program's trust funds could be out of money in about a decade's time. Once that happens, benefits could be slashed to a large degree in the absence of adequate revenue.
A big part of the problem stems from the fact that baby boomers are leaving the workforce at a rapid clip. Since payroll tax revenue is Social Security's primary funding source, shrinking labor force participation rates could put the program in a financially fragile spot.
Source Fool.com
