Social Security benefits might last a little longer than many first thought.
The Social Security Administration now projects their program's trust funds will run out of money by 2035. That's a slight improvement. The agency’s previous project was 2034. Still, it's not good news for Social Security recipients down the line. When the funds eventually are depleted, the benefits paid out will be slashed by 20%. Economist Vance Ginn says Social Security is in trouble and will be unless lawmakers take serious steps to fix it.
“Historically speaking, it’s been very difficult to touch Social Security and Medicare, even though some major reforms are needed in order for them to remain solvent over time,” Ginn explained.
He says it’s better for Congress to deal with the issue now than 13 years down the road. He's proposed several ways to improve social security, including raising the retirement age.