Social Security: 3 Strategies That Can Protect Your Retirement if Benefits Are Cut
Social Security benefits can have a significant effect on your retirement, depending on how much you have saved in your retirement fund. In fact, nearly a quarter of married couples and close to half of unmarried beneficiaries depend on their monthly checks for at least 90% of their retirement income, according to the Social Security Administration (SSA).
However, there's a chance benefits could be reduced or even eliminated in the relatively near future, which could be disastrous for millions of retirees.
The SSA relies primarily on payroll taxes to fund benefits. But with so many older adults retiring and living longer lifespans, the money coming in from payroll taxes is no longer enough to pay out benefits in full. To bridge the gap, the SSA has been pulling money from its trust funds, but those funds are expected to be depleted by 2034 -- at which point payroll taxes will only be enough to cover around 76% of projected benefits.
Source Fool.com
