The coronavirus pandemic could lead to Social Security cuts happening sooner than you think
Social Security benefits are a major source of income for millions of retirees, with around one in five married couples depending on their benefits for at least 90% of their income in retirement, according to the Social Security Administration (SSA).
However, you may not be able to rely on your monthly checks as much as you think in the future. While the program is not going bankrupt or on the verge of collapse, benefit cuts are on the table. And there are a few signs those cuts could occur sooner than expected.
Although current benefits are not at risk of being reduced due to the coronavirus pandemic, COVID-19 could exacerbate Social Security’s problems and result in future cuts.
Mass unemployment could force the SSA to make cuts sooner
Generally, the SSA uses money from payroll taxes to pay out current retirees’ benefits. However, payroll taxes are no longer enough to continue paying out benefits in full, so the SSA has been forced to tap its two trust funds to cover the deficit. Those funds are quickly running out of money, though, and according to the SSA’s most recent projections, they’ll be depleted by 2034. If Congress doesn’t make any changes before then, payroll taxes will only be enough to cover around 76% of future benefits.
Read more: https://www.gastongazette.com/zz/news/20200716/coronavirus-pandemic-could-lead-to-social-security-cuts-happening-sooner-than-you-think
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