Social Security is funded by a 6.2% tax on income up to $168,000 (2024).
Shortfall
Social Security benefits are projected to be paid in full until 2037. If no changes are made to how Social Security is funded, benefits would be reduced to 76%.
It’s incredibly likely that changes will be made>
This is because over 70% of retirees rely on Social Security as their key source of income.
Congress is responsible for any changes to how Social Security is funded.
Political Will
A key reason Congress hasn’t enacted changes? The political will is lacking.
But really, many people make over $168,000 a year.
And, if we remove the tax income limit, that would go a long way towards funding the gap.
It’s a pretty straightforward tax.
The good news? People are already used to it coming out of their pay.
Next Step
Ready to take the next step and work with a fee-only CFP? Reach out to schedule a Discovery Meeting to learn more.