Social Security faces a funding crisis predicted for 2035, where benefits could diminish to 83% of current levels and drop to 70% in subsequent years. Despite generating around $1.6 trillion annually from payroll taxes, an aging population will likely reduce available funds, and Congress has shown reluctance to address potential tax increases. Proposals for reform include increasing the retirement age and limiting benefits for high earners. However, these changes could significantly burden those reliant on Social Security for financial support, raising concerns about equity and sustainability.
The Social Security trust fund will run out of money by 2035, leading to a decline in benefits unless reforms are enacted to address funding shortfalls.
If no changes occur, the benefits paid from Social Security may drop to 70% as the eligibility ages and funding are re-evaluated to manage solvency.
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