It used to be, that the longer you worked (and the more money you made) the higher your Social Security benefits would be. But that isn’t true anymore.
Today, Social Security pays out more in annual benefits than revenue it brings from taxes on payroll and benefits.
After 2036, Social Security will not have the money to pay full benefits to retirees. After 2036, retirees can generally expect a return of about 75 cents on every dollar of their scheduled benefits, and benefits could continue to be reduced thereafter.
The Social Security Landscape for Current 25-to-40-Year Olds
- Unless changes are made, current 25-to-40-year olds face an over 25% reduction in benefits once the Social Security trust fund is gone.
- If you are 38 years old today, when you turn 63 in 2036 your Social Security benefits will be at least 23 percent less than what today’s retirees receive.
- If you are 25 years old today, when you turn 63 in 2042, your Social Security benefits will be at least 27 percent less than what today’s retirees receive.