The Social Security Board of Trustees has warned that by 2033, the trust fund will be depleted, leading to an automatic 23% reduction in benefits unless Congress intervenes. The system, funded by payroll taxes, is facing unsustainable long-term costs highlighted by earlier reports. The Baby Boomer generation has played a dual role by contributing to the program in their working years while increasingly draining its resources upon retirement. Although the system will remain operational, it will only be able to cover 77% of promised benefits post-2033.
The Social Security trust fund is projected to run dry by 2033, leading to an automatic 23% cut in benefits unless Congress takes action.
The Social Security system is pay-as-you-go, relying on payroll taxes, but faces unsustainable long-term costs under current financing.
Baby Boomers have both helped finance Social Security during their working years and depleted the trust fund as they retire and live longer.
In 2033, the Social Security system will still operate but will only be able to pay about 77% of promised benefits.
Collection
[
|
...
]