Will Social Security Be There?

Starting in 2033, Social Security trustees project the system will be able to pay only 77% of promised benefits. For this reason, a number of reforms have been suggested, including:

• Increase maximum earnings subject to Social Security tax (currently $117,000 in 2014).
• Raise the normal retirement age (currently 66 for individuals born between 1943 and 1954; 67 for those born in 1960 or later).
• Lower benefits for future retirees (escalate benefits based on increases in consumer prices rather than wages).
• Reduce cost-of-living adjustments (COLAs) for all retirees.

For more information on Social Security reform, feel free to visit the official website of The American Academy of Actuaries. You can also take a look at the chart below.

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