This Dreaded Social Security Milestone Is Coming in 2021
Tens of millions of seniors count on Social Security to provide retirement income, and among those without a pension or personal savings, that dependency tends to be even stronger. But Social Security is grappling with its share of financial woes, and those troubles may, in fact, come to a head as early as the upcoming year.
Starting in 2021, Social Security is expected to spend more money keeping up with its obligations than it collects in revenue. The reason? Social Security gets the bulk of its revenue from payroll taxes -- the ones that apply to earnings of up to a certain limit that changes annually (for 2020, it's $137,700). But as baby boomers leave the workforce in droves and start drawing on their own benefits, the program will suddenly be in a tight spot where its obligations exceed its revenue.
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Source Fool.com
