Association of Mature American Citizens' [AMAC] Social Security Advisor Russell Gloor explains. "Starting this year they believe that benefits being paid out to seniors may be more than the income they receive from workers. That means they will have to start drawing from the trust funds."
Gloor compares the numbers of people accepting their benefits now compared to those in 1950: "There were about 16 people contributing to Social Security through working for every 1 beneficiary. But - last year there were about 2.8 people working for every 1 beneficiary. So, 2034 now is the date that it is predicted the Reserve Fund will be depleted."
Will Social Security Rates Really Go Up Next Year?
Although Gloor is familiar with the predictors of a 22% reduction in payments in 13 years...he's doubtful. "The only way that that will actually happen is if Congress does nothing. It would be political suicide for them if Congress allows Social Security to actually cause a cut in benefits." He comments that it could kill their re-election chances.
Photo:GettyImages
Social Security Payments may be cut in 2034Photo: Getty Images