Social Security Benefit Cuts May Be on the Way. Here's How to Compensate

Social Security serves as a key income source for millions of seniors, and for many, those benefits constitute their sole source of income. That's problematic, though, because seniors on Social Security have been losing buying power for years. Also, the reality is that those benefits were never supposed to sustain retirees by themselves in the first place.

For average earners, Social Security will replace 40% of preretirement wages. Most seniors need a lot more income than that to maintain a comfortable lifestyle and cover essential expenses.

But what makes matters even worse is the fact that Social Security recipients may be looking at substantial benefit cuts in a little over 10 years' time. In its latest report, the program's Trustees project that Social Security's trust funds will run out of money by 2035. Once that happens, benefits could be slashed to the tune of 20%.

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Source Fool.com