The Most Terrifying Social Security Graphic Yet
Social Security is widely regarded as the most important social program for senior citizens. As of July 2017, according to data released by the Social Security Administration (SSA), just over 42 million seniors was receiving a monthly benefit check totaling an average of $1,370. Without this income, millions of seniors would probably be struggling to make ends meet, or perhaps living below the federal poverty level.
Unfortunately for these 42 million retirees, and the millions upon millions of workers currently in the labor force who expect Social Security to provide a comfortable retirement, this important social program isn't in the best shape. The latest report from the Social Security Board of Trustees suggests that beginning in 2022 it'll pay out more in benefits than it's generating in income. By 2034, the $3 trillion in asset reserves Social Security had in its coffers as of 2022 will have completely disappeared. If this happens, and Congress has made no effort to resolve the estimated $12.5 trillion cash shortfall between 2034 and 2091, the trustees project that up to a 23% across-the-board cut in benefits may be needed to sustain payouts through 2091.
Image source: Getty Images.
Source: Fool.com
