Will the Biggest Cut to Your Social Security Benefits Be the One You Cause Yourself?
You may have heard the rumors that Social Security is in trouble. And unfortunately, they're true.
Social Security is facing a major funding deficit. In the coming years, it expects to owe more money in benefits than what it collects in revenue due to the fact that so many baby boomers will be existing the workforce and drawing their own benefits. (Since the program gets most of its revenue from payroll taxes, a smaller workforce and greater demand for benefits is bad news.) In fact, if lawmakers don't come up with a solution to save Social Security from insolvency, recipients may be in a for a whopping 24% benefits cut.
Clearly, that's bad news -- catastrophic news, in fact, for the millions of seniors who already count on Social Security to provide the bulk of their income. But while a 24% cut to benefits may sound bad, the decisions you make with regard to filing could actually result in an even larger reduction.
Source Fool.com
