Social Security in the US is heading for insolvency.
Here are 3 ways to fix it — and how you can protect yourself Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below
Most American workers are probably aware that the Social Security system is facing a massive and imminent funding shortfall. But how imminent is it? The program’s Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement benefits, could be depleted in just six years, according to the Congressional Budget Office (CBO) (1).
Top Picks “That’s one year earlier than we projected,” CBO Director Phillip Swagel said at a meeting held by the Subcommittee on Fiscal Responsibility and Economic Growth (2). Swagel noted that the trust fund for Part A of Medicare will also be exhausted in 2040 — a double threat for older Americans. When it comes to Social Security, that means if Washington doesn’t get its act together by that deadline, all beneficiaries could face an automatic benefit cut by an average of 28% between 2033 and 2036, according to the CBO.