What the Social Security Deficit Means to Your Future Finances

Social Security is facing a severe funding shortfall. It cannot go bankrupt, despite the rumors — but it could have to slash benefits!

According to The Motley Fool, “Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund, which is what retirement benefits are paid out of, is set to run dry in 2033. At that point, only 77 percent of benefits will be payable.”

Any benefit cut is going to have a significant financial impact. To prepare, the article suggests you start reducing your spending now to build up your savings. Another idea is to return to work if you are able.

Of course, benefit cuts would not be a concern if lawmakers could sit down and come up with a plan to shore up Social Security. The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.