10,000 Boomers Retire Every Day, and Social Security Won't Last. Will You Get Lucky or Be One of the 'Losers'? Find Out Here.Americans on average have saved only 78% of the amount they'll need in retirement.
ByAmanda Breen•
Key Takeaways
- The Old-Age and Survivors Insurance Trust Fund will run dry by 2033.
- David Blanchett, head of retirement research at PGIM, says younger Americans should expect reduced benefits.
Social security, the federal program that nearly67 million Americanscount on to fund their income inretirement, is running out — fast.
Ten thousand Baby Boomers retire every day, and by 2033, the Old-Age and Survivors Insurance Trust Fund will run dry,CNBCreported. Social Security won't disappear completely, but some retirees will likely get the short end of the stick.
Related:How a Grandma Who Made $35k Earns 7 Figures in Retirement
Workers will continue to pay Social Security payroll taxes and fund the program, but with no action from lawmakers, roughly 77% of promised benefits would be payable if the fund empties, per the outlet.
That means a bleak outlook for many Americans. On average, Americans have saved only 78% of the amount they'll need inretirement, and 52% of U.S. households may not be able to pay for essential expenses in retirement, according to a 2023Fidelity report.
Although Congress is expected to address the issue, "there are going to be losers," David Blanchett, head of retirement research at PGIM, the asset management arm of Prudential Financial, told CNBC.
Related:Protect Your Retirement Fund Against Inflation With This Benefit
And who will those "losers" be? Probably no one who's already inretirementor close to it.
"But I do believe younger Americans — if you're maybe in your 40s — should count on a lower benefit," Blanchett warned.
