Social Security facing insolvency by 2034 due to increased expenses and demographic shifts

From Nasdaq: 2025-01-25 06:50:00

Social Security is a crucial income source for many seniors, with about a third relying on it for at least half of their financial support. The program is facing insolvency, with a Congressional Budget Office report projecting depletion of funds by 2034. Recent events suggest benefit cuts may happen sooner due to demographic shifts and increased expenses. President Biden’s Social Security Fairness Act raised benefits for government workers, accelerating trust fund depletion. Potential solutions include increasing payroll taxes or adjusting the full retirement age. Planning ahead and saving for retirement independently can reduce reliance on Social Security.

Source: https://www.fool.com/retirement/2024/12/15/social-security-23-trillion-shortfall-benefit-cuts/?utm_source=nasdaq&utm_medium=feed&utm_campaign=article&referring_guid=71462d4a-c143-442f-8432-7bcd2b61176d



Read more at Nasdaq: Social Security Is Set to Run Out of Money in 2034. Here’s Why That’s Probably Too Optimistic.