Social Security is experiencing a funding shortfall primarily due to a shrinking labor force as baby boomers retire. Although the program is not on the brink of bankruptcy and is funded by payroll taxes, projections indicate that its trust funds could deplete by 2035, leading to potential benefit cuts. While there's some fear regarding the program's future, it is crucial to differentiate between myths and facts. With proper financial management and adjustments, Social Security can continue to provide benefits to millions of Americans.
In the coming years, Social Security's financial resources will be significantly strained as the program loses payroll tax revenue while needing to pay benefits to a growing senior population.
Social Security can continue to operate as long as there’s an active labor force, primarily because it’s funded by payroll taxes, not at risk of going away.
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