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Money Minute: The future of Social Security

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The future of Social Security

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The future of Social Security

01:15

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PITTSBURGH (KDKA) — Will social security be there when you need it?

KDKA-TV Money Editor Jon Delano ponders that question in this week’s Money Minute.

When I was young, I used to wonder, “Will social security be there for me when I retire?” Now, that I’m older, the better question is, “How long will it last once I do retire?”

It’s a good question because the experts say in 10 years, the money coming in from present-day workers will ”not” be enough to cover all the retirees who are expecting a return on their years of contributing Social Security taxes.

What does that mean exactly?

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It means that in 2034, anyone on Social Security will receive about 75 to 80 percent of their expected benefits, not the full amount. Congress has had plenty of time to correct the problem, but the choices are hard: raise the retirement age for full benefits to 68 or 70, raise social security taxes above its current 6.2  percent rate or start taxing income above the current $160,000 cap.

Doing nothing means less for you in retirement.



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