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The Cost of Delaying Social Security Reform - finance.yahoo.com
The Social Security trustees have been sounding the alarm for decades. The program’s tax revenue has been insufficient to fully fund benefit payments since 2011, requiring reliance on other income streams (income tax on benefits and interest on reserves) to make up the difference. As of 2021, the financial picture slipped further, to the point that liquidation of the program’s reserves is now making up the difference. Although these reserves had reached nearly $3 trillion, the drawdown is now expected to fully deplete them by about 2032 or 2033, according to sources.
Not a pretty picture, for sure. And it brings with it the potential for substantial reductions in monthly benefits, as explained in a post yesterday by Sarah Edwards on finance.yahoo.com. Read the post in full here.
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