Social Security surplus is running dry due to increased payouts
Social Security is facing a funding shortfall, which may result in reduced benefits for retirees. The system has been paying out more than it collects due to an increasing number of retirees and a shrinking workforce.
The surplus in Social Security’s trust funds is expected to run out within a few years, leading to a potential 22% cut in benefits. For example, a retiree expecting $2,500 checks may only receive $1,950.
There are ways to bolster the program and prevent the funding shortfall, but no action has been taken yet. The potential cut in benefits is a concern for retirees, but it may not be the biggest threat to their retirement.