The Real Damage to Social Security From COVID-19 Could Be 2 Years Away
The COVID-19 pandemic has had dramatic immediate impacts on people's lives around the world. Those on Social Security have had to batten down the hatches and make the best of what their benefits will let them afford, while many nearing retirement age have faced layoffs, involuntary furloughs, and other adverse events that have affected their income and forced them to think about early retirement.
Social Security's own financial future has also taken a hit from the coronavirus, as lower wages means less payroll tax revenue to fund benefit payments. That could bring the day of reckoning for the trust funds that provide the bulk of the money that goes to recipients several years closer than the current estimated 2035 depletion date.
Yet a large group of benefit recipients could see their Social Security benefits get cut a lot sooner than that. As early as 2022, there could be millions of Social Security recipients who get a lot less on monthly payments than they expected.
Source Fool.com
