Social Security serves as a key source of income for tens of millions of older American citizens. But this week,came with a shocking news. Some bad information was visible at the Social Security the front. the simply-released 2020 Trustees Report projects that the program’s trust funds are expected to expire by 2035. The date aligns with what the 2019 Trustees Report expected but that bad l news, however, is the quantity to which reduction of benefits will take place in the absence of these trust funds.
This year they plan on 21% dip as compared to a 20% reduction in the scheduled benefits come 2035 was devised by the social security trustees,the previous year. The one percent jump may not be extremely huge but considering the fact that many people are dependant on this income for survival and it will severely affect their livelihood, is what brings the issue to the table. However, the programme is not on the verge of running out of money in all terms as it gets its funding from payroll taxes paid by employees for the privilege of having a job. Although, it may not be wrong to expect that it will owe more in benefits than it collects in revenue as there are massive workforce exits in rapid succession without any adequate replacement.
The whole Social security working system has some trust funds to tap in order to avoid hampering with the benefits of those who need them. But once those funds run short,there will be no way left to compensate for its revenue shortfall. The financial crisis would then be inevitable.
Unfortunately, there is genuinely no hard core solution to the social security’s financial woes. Therefore it must be wise for both current and future recipients to be prepared for the possibility that come 2035, benefits may not be in the same condition.