A $4,356 Social Security Benefit Cut Is Coming -- Will You Be Ready?
This has been a challenging year in so many respects for the American public. The COVID-19 pandemic has completely changed the way we interact with one another, and it's displaced more than 20 million workers. If you're an investor, you were also taken on a wild ride, with the stock market packing about 10 years' worth of volatility into a period of four months. And don't even get me started about the murder hornets.
But one of the few solaces working Americans have always been able to take is the idea that, if they earn 40 lifetime work credits, a Social Security benefit will be waiting for them when they retire.
The Social Security program has navigated through 13 recessions prior to the COVID-19 pandemic. Despite some obviously grim outlooks during those previous recessions, you'll note that Social Security is still here, and it's been paying continuous retired-worker benefits for more than 80 years. This is why it's often referred to as America's most successful social program.
But just because it's been a historically successful program doesn't mean it's necessarily in great shape to service future generations of retirees.
Since 1985, the annually released Social Security Board of Trustees report, which examines the short-term (10-year) and long-term (75-year) outlook for the program, has cautioned that long-term revenue collection would be insufficient to cover outlays. In other words, Social Security wouldn't bring in enough money to cover the estimated payments to all beneficiaries over the ...
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