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14.09.2024 11:55:00

190 Million Americans Don't Know Social Security Cuts Could Be Coming -- and the Size May Surprise Retirees

Social Security is an essential part of American life. The program pays a regular, monthly income to millions of American retirees -- more than 70 million last year. For many, it provides a meaningful supplement to personal savings and a measure of safety. To others, it is almost all they have. In fact, for the bottom 40% of earners, Social Security accounts for 84% of their post-retirement income. What would these Americans do without Social Security?Despite the essential role it plays in our society, Social Security has a history of being, at times, on somewhat shaky financial footing. Sweeping changes during the 80s and 90s -- including increasing taxes on Social Security benefits -- put the program in a position to remain solvent.The program works because young, healthy workers pay into it while those enjoying their golden years draw from it. As long as the balance between workers and retirees is maintained, the program is solvent. The ratio between workers and retirees is affected by several things, such as immigration and (to a lesser extent) increasing lifespans, but the single biggest factor is the national birthrate, which has been falling for years. With fewer healthy, productive workers in relation to retirees than there once were, less is paid into Social Security than is paid out.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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