Social Security is at risk of benefit cuts within the next decade, as warned by its Trustees. The program primarily funded by payroll taxes is projected to owe more in benefits than it generates in revenue, especially as the workforce age demographic shifts. Trust fund depletion is expected by 2034, potentially limiting benefit payments to 81% of their current levels. For retirees reliant solely on Social Security, the prospect of cuts raises significant concern, despite previous successful interventions by lawmakers to prevent cuts.
Social Security's combined trust funds are projected to be depleted by 2034, which may lead to cuts affecting 19% of benefits for recipients if revenues fall short.
The looming possibility of Social Security cuts arises primarily because the program relies heavily on payroll taxes, and over the years, benefits outpace revenue.
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