10 things everybody should know about Social Security

The trust fund has a projected deficit. The assets in the Social Security trust funds are expected to be exhausted in 2033, according to the Social Security Board of Trustees’ annual report. After that, incoming tax revenue will provide enough income to pay out about three-quarters of promised benefits. “If nothing else is done, certainly payments would be reduced dramatically to just what the tax rolls were bringing in each year, but we can always increase the Social Security tax,” says Blankenship. Possible changes that might correct the problem include tax increases, benefit cuts, or a combination of the two approaches. The trustees found that an immediate payroll tax increase of about 1.3 percent for workers and employers or an immediate benefit reduction of 16.2 percent would both correct the projected deficit and restore the program to solvency for the next 75 years.10 Things you should know….

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