Social Security's Income Inequality Problem Could Hit Retirees Hard

Social Security is facing a growing gap between the revenue it brings in and the benefits it pays out. The actuaries at the Social Security Administration estimate that the retirement program will pay out $1.5 trillion in benefits this year, but revenue from payroll taxes, taxes on benefits, and interest earned on investments will total only $1.3 trillion. That deficit is set to expand over the next six years until the trust fund runs out of money.While there are several reasons why Social Security is facing a shortfall in revenue, there's one clear culprit that Congress has the power to address: rising income inequality. If Congress fails to act, Social Security retirement benefits could be slashed by 23% across the board as soon as 2032, according to the most recent estimates from Social Security's chief actuary.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool