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Three Major Social Security Adjustments that May Impact Your Retirement

Social Security provides a lifeline to thousands of Americans. For example, based on a 2022 survey from the Transamerica Center for Retirement Research, about one-quarter of American people anticipate that their payouts will be their main source of earnings in retirement.

A stunning 70% of poll respondents, however, expressed concern that Social Security won’t provide for them once they’re prepared for retirement, according to the same study.

Although Social Security has long been a difficult topic, it has subsequently gained importance as more Americans express concern regarding the plan’s future. There are certainly serious issues affecting Social Security, and even more, significant changes may be coming.

The risk of benefit reductions is currently the major issue for Social Security. The program is mostly supported by payroll taxes. The benefits for today’s pensioners are paid for by the taxes of working people today.

Yet, the Social Security Administration (SSA) is presently running a loss because it is distributing higher benefits rather than getting in tax revenue. To prevent cutting benefits, the SSA is already pulling from its trust money, so this income won’t remain permanently.

The SSA Board of Trustees’ most current projections indicate that these trust earnings would most likely run out by 2035. Benefit reductions might be considered if there are no modifications made between now and then.

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