Social Security Faces Benefit Cuts. Could Raising Full Retirement Age Be the Solution?
Seniors on Social Security routinely rely on their benefits to make ends meet. But in about a decade's time, current beneficiaries could be in for a rude awakening.
In the coming years, Social Security is expected to owe more money in benefits than it collects in revenue as baby boomers exit the workforce in droves. The reason? The program's primary revenue source is payroll tax funds. Once the labor force shrinks -- which is expected to happen as boomers leave it -- that funding source will be diminished.
Social Security does have trust funds it can tap for a number of years to keep up with scheduled benefits in the face of declining revenue. But once those trust funds run dry, benefit cuts will be a real possibility seniors will have to grapple with.
Source Fool.com
