Seniors on Social Security Could Be Headed for a 20% Pay Cut

Millions of retired seniors get Social Security payments on a monthly basis. And for some of those seniors, the program is their primary source of income.

This year, in particular, that has proven to be an issue.

Although Social Security beneficiaries received a substantial 5.9% hike through 2022, inflation is well surpassing that increase at this time.

That implies that seniors who rely primarily on Social Security are losing purchasing power, even if they are receiving a greater rise.

But that isn't the only problem with relying on Social Security. Due to a revenue shortage, Social Security may be forced to decrease payouts by 20% in the not-too-distant future.

And that might put a lot of seniors out in the cold.

Why slashing benefits is a definite possibility

Due to an expected enormous exodus of baby boomers from the workforce, Social Security projects to owe more in payouts than it collects in income in the coming years.