The 8 Major Spending Categories That Affect Social Security's Cost-of-Living Adjustment
Each and every month, more than 42 million retired workers receive a check from the Social Security Administration (SSA). Of these more than 42 million retirees, an estimated 62% count on their check to provide at least half of their monthly income. Without this income, millions of retirees would probably be struggling to make ends meet.
Thankfully, Social Security is somewhat self-sustaining. Despite pervasive rumors that the program could go bankrupt, that's not something that could happen, assuming Congress doesn't alter how the program is funded. You see, Social Security is funded in three ways: payroll taxes, the taxation of benefits, and interest income earned on its excess cash. Payroll taxes accounted for 87% of all revenue in 2016, and as long as Americans continue to work, new revenue will continue streaming into the program.
Image source: Getty Images.
Source: Fool.com
