Read This Before You Write Off Social Security for Your Retirement
Millions of seniors today depend on Social Security to pay the bills, but the program's finances are anything but stable. In fact, you may be assuming that by the time you retire, there won't be any money left for Social Security to pay you with. But here's why that line of thinking is misdirected.
In the coming years, Social Security expects to face a financial shortfall as baby boomers exit the workforce and start drawing their benefits. That scenario is expected to be a double whammy for Social Security because not only will the program have to start making more payments, but it'll also begin collecting less payroll tax -- its primary revenue source.
Social Security has trust funds, which serve as cash reserves it can tap to compensate for the shortfall it expects to encounter. But once those trust funds run dry, it may have no choice but to slash benefits. And that could easily happen within the next 15 years.
Source Fool.com
