“There’s no way to predict with certainty what might happen to Social Security, but here’s what we know now,” by Matthew Frankel. “If you watch or read the news on a regular basis, chances are you’ve seen a headline or two to the effect of “Social Security is going broke.” If you’re a retiree collecting a Social Security check, or if you’re a worker hoping Social Security will still be around when you get older, then the question of “how safe is Social Security?” is an important one. Here’s the reality of Social Security’s finances, what we can do to solve the problem, and what to expect from the new Republican government.”
“Social Security is not broke. Social Security had more than $2.8 billion in reserves in its trust fund at the end of 2015, and it was expected to run a small surplus in 2016. In fact, Social Security’s income from payroll taxes, taxes on certain Social Security benefits, and earnings on its invested reserves are expected to exceed the program’s expenses through 2019.” By 2020 payout are likely to exceed tax revenues; the trust fund (accumulated surpluses) are likely to be depleted by 2034… IF Congress fails to act. Frankel explains ways to fix the shortfall problem and notes that Trump has pledged not to mess with Social Security. However, there are moves among Republican legislators to severely reduce SS retirement benefits. Get the details at: https://www.fool.com/retirement/2017/01/16/how-safe-is-social-security.aspx
Source: Financial Planning for Women