Recently, reports have come out about social security disappearing by 2033, which has instilled fear among retirees. The truth is 76% of social security is funded by employees. This means the money pulled from a worker’s paycheck for social security, 6 1/2% of pay for each employee, is being redistributed to retirees.
So, where are people getting the idea that social security is running out? Historically, more people were working than those who were retired. As a result, the surplus funds were distributed into a social security trust fund. According to reports, this trust money is expected to run out by 2033 . Because of this, we will fall 25% short of satisfying our obligations each year. Thankfully, there are solutions to this complication. The most popular solution is to remove the social security income cap. This would cover almost 98% of the deficit! You can now worry less and stick with your financial plan!
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