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Social Security Insolvency–What If It Actually Happens?
Over the past few years (actually for decades, now), the Social Security trustees have been sounding the alarm on insolvency. Back in 1983, Congress adopted a slate of amendments intended to sustain the program through the mid- 2050’s, although economic and demographic factors have reduced that horizon to less than a decade from now. So, what does that mean for future Social Security recipients? In simple terms, it means that absent corrective legislative action, benefits could be slashed somewhere between 20% and 25% as soon as 2033.
Many believe it unlikely that the projected benefit cuts will become a reality, since Congress has acted on the brink of catastrophe before. Despite that mindset, it becomes important that current and future retirees consider undertaking contingency planning so that they’re prepared if the dire forecasts become reality. The Motley Fool’s Maurie Backman offers some advice on how best to do that via a post today on nasdaq.com…check it out here.