Social Security Needs an Extra $12.5 Trillion to Stay Solvent at Current Benefit Levels Through 2091
As many Americans are probably well aware, Social Security -- arguably the most important social program in this country -- is in deep trouble. Despite the fact that roughly three out of five elderly beneficiaries rely on Social Security to provide at least half of their monthly income, this vital program is on the verge of a major shift -- and it's all spelled out in the newly released forecast from the Social Security Board of Trustees.
According to the latest annual report from the six-member Trustees board, Social Security's asset reserves are set to peak around $3 trillion by 2022. However, in 2022, the program will begin paying out more in benefits than it's generating in revenue via payroll tax, interest on its asset reserves, and taxes on benefits. By 2034, the aforementioned $3 trillion in spare cash is expected to be completely exhausted.
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Source: Fool.com
