Sep 19, 2020
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About this Deal
Sweeping benefit cuts may be necessary well before 2035.
Last month, America's top social program, Social Security, celebrated its 85th anniversary since being signed into law. Today, it's a program responsible for providing monthly benefits to more than 64 million people, over 7 in 10 of whom are retired workers. Of these retirees, 15.3 million are single-handedly pulled above the federal poverty line as a result of their Social Security income.
In other words, Social Security is sort of a big deal when it comes to the financial well-being of our nation's retired workforce.
Unfortunately, Social Security is also running on fumes.
Our nation's top social program is facing a nearly $17 trillion funding shortfall
For each of the past 35 years, the Social Security Board of Trustees' analysis examining the long-term outlook (75-year) for the program has estimated that revenue collection would be insufficient to cover outlays. As of the 2020 report, Social Security is staring down a funding obligation shortfall of a whopping $16.8 trillion, and its $2.9 trillion in asset reserves (i.e., its net cash surpluses built up since inception) are expected to be exhausted by 2035.
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