Here’s Why Everyone Should Be Concerned About Social Security Solvency

There’s been a lot of talk lately about Social Security solvency and rightfully so. As an article in The Mercury News points out, Social Security is funded by payroll taxes. The program used to take in more than it paid out in benefits for retirees, but not anymore. The combination of the Baby Boomer generation retiring and people living longer coupled with a slow-growing work force has resulted in Social Security’s stockpile shrinking.

If nothing changes, the Social Security Trust Fund could reach a deficit in 2034, at which time it would not be able to pay out its full benefit amounts. Retirees could see their checks cut about 20 percent — and it might only get worse.

No one wants to see that happen. The Seniors Trust is working diligently to help pass the Social Security Expansion Act which would shore up its long-term solvency as well as increase monthly benefits.