Nearly 40 Percent of Near-Retirees Don't Realize Social Security May Be in Trouble

The latest Trustees Report finds that seniors on Social Security could see a 20 percent reduction in scheduled benefits by 2035, and future beneficiaries could end up earning 20 percent less than the amount they would otherwise receive based on their earnings records, according to the Motley Fool . A MassMutual survey found that 39 percent of near-retirees aged 55 to 65 are unaware that future Social Security cuts are under consideration. Social Security benefits currently will generally supplant about 40 percent of the average earner's pre-retirement wages, but most seniors require closer to 70 percent to 80 percent of their former earnings to live comfortably post-retirement. Reductions are likely to make life harder for those with limited savings. Social Security also is expected to owe more in benefits than it absorbs in revenue in the coming years, due to the mass retirement of baby boomers. Trust funds that Social Security can tap to compensate for revenue shortfalls are expected to be depleted by 2035.