In Just 11 Years, Social Security's Trust Funds Could Be Out Of Money. The Reason May Surprise Retirees.

Social Security is undeniably one of our government's most essential functions. The roughly $1.4 trillion in benefits the Social Security Administration (SSA) pays out each year is a lifeline to millions of retired Americans, making up a significant part of post-retirement income for most. For others, it's nearly all they have.When the program was conceived, it was intended to be a part of a "three-legged stool" along with pensions and personal investments. Of course, most Americans no longer have access to pensions and now must rely on Social Security and disciplined investing throughout their lives. Many earners at the lower end of the income spectrum can't afford to put away money in a 401(K) and end up completely reliant on the program.Unfortunately, the SSA is on track to become unable to meet its benefit obligations within the next 11 years. The latest report from the SSA expects the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds -- technically separate but often combined for simplicity in projections -- to be depleted by the end of 2035. Before we look at why this is happening and what might be done, let's get a better understanding of how Social Security works.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool