If you read the latest Social Security Trustees Report, you may be inclined to curl up in a ball, bemoaning the fact that your retirement may have just gotten a lot more complicated. In the coming years, Social Security is expected to see its primary revenue source -- payroll taxes -- take a major hit. The reason isn't due to a change in any laws, but rather, the anticipated mass exodus of older workers who will be reaching retirement age in the coming years.
But Social Security's financial picture isn't all bad. So before you start worrying that you won't be in line for any retirement benefits, realize that scenario just isn't on the table. Benefits will not go away completely In the coming years, Social Security is expected to owe more in benefits than it collects in payroll tax revenue.
But that doesn't mean benefits are disappearing. Right now, the worst-case scenario has those benefits shrinking to some degree. The latest estimate from the Social Security Trustees is 17%, which means current and future retirees can still anticipate being able to collect the majority of the benefits they're in line for.
In fact, Social Security can't go away completely because as long as there's a labor force, the program will continue to get funding. So even if the extent to which benefits may be cut changes for the worse in the coming years, Social Security should still be in a position to continue to pay seniors something . And something is better than nothing.
Benefit cuts may not eve.
