The latest Social Security Trustees report projects the retirement trust fund will be depleted by 2033, at which point benefits would need to be cut by about 20% unless Congress acts.
Reform options include raising the full retirement age, increasing the payroll tax cap, adjusting the COLA formula, or some combination. Political gridlock has stalled meaningful action.
Younger workers should plan for potentially reduced Social Security benefits by increasing personal retirement savings through 401(k)s, IRAs, and taxable accounts.
