Seniors Could Face a 20% Cut to Social Security Benefits in 13 Years
The latest report on the financial status of Social Security shares some disturbing news. Under its current funding system, Social Security won't have enough money to cover full benefits starting in 2035. According to projections, the funding shortfall in that year, and thereafter, is 20%.
The projections in question come from an annual report published by the Social Security and Medicare Boards of Trustees. This year's report shows an improved funding outlook vs. last year. Last year, projections estimated a shortfall starting a year earlier, in 2034.
Legislators, then, have one more year to implement a fix. And the trustees report is clear on this: Social Security's funding problem can be resolved before 2035. Specifically, the report states, "Lawmakers have many policy options that would reduce or eliminate the long-term financing shortfalls."
Source Fool.com
