Millions of Future Social Security Recipients Could Face a Backdoor Benefit Cut
Yahoo Finance ·
If you've been hearing rumors that Social Security is on the verge of bankruptcy, here's some good news: The program is not at risk of going broke. Social Security actually can't go broke because it's funded with payroll taxes. But in the coming years, that revenue stream is expected to shrink as older workers retire. And thanks to declining birth rates, the number of replacement workers entering the labor force won't suffice in allowing Social Security to keep up with its financial obligations. According to the latest Social Security Trustees report, the program's Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement and survivor benefits , is projected to run out of reserves in 2032. Once that happens, Social Security benefits could face a 22% cut. Lawmakers have options to shore up the program's finances and prevent broad Social Security cuts, including raising payroll taxes, increasing the wage cap subject to Social Security taxes, and reducing benefits for higher earners.
DYAX Investor Sentiment
Bullish (Long) 37% · Bearish (Short) 63%
363 participants
Related News
- SK Hynix makes history: AI dominance, ADRs, and the Korea Discount
- OpenAI’s key exec to step down due to health concerns
- Spike in options fear has favored S&P 500 gains
- Raymond James Sets Wall Street's Highest Price Target on SpaceX Stock at $800. Here's the Math Behind the 425% Upside Call.
- Bayer sells $3.4B stake in contraceptives business to Apollo
- UK retailer M&S widens Amazon partnership with Dutch launch