Social Security Confidence Is High -- But Should It Be?
Millions of seniors today rely on Social Security to pay their bills. But will the program manage to continue paying benefits in the future as it does today?
It's questionable. Though Social Security is not in trouble of going away completely, the program will owe more money in benefits than it collects via payroll tax revenue in the coming years. The reason? As large numbers of baby boomers exit the workforce and start filing for the benefits they've earned, too few workers will enter the labor force to replace them.
Social Security has trust funds it can fall back on to bridge the gap between the benefits it owes and the revenue it receives. But once those trust funds run out, the program may have to cut benefits. And according to the Social Security Trustees, that may happen in as little as 14 years.
Source Fool.com
