New Study: Social Security Reserves Could Run Out By 2034

CHICAGO (CBS) -- A new study shows most Americans may not be prepared for retirement.

New warnings have surfaced regarding the future of social security, as some 10,000 baby boomers become eligible for those benefits every day.

Like many Americans, Evan Pinchuk is worried about the future. This year's government report about social security funds echoes those concerns.

"If Congress were not to act, full scheduled benefits would not be at the point of trust fund reserve depletion," stated Stephen Goss, the Chief Actuary for the Social Security Administration.

Goss testified before Congress Thursday saying the payout exceeds the revenue collected by social security, for the first time since 1982, meaning social security must dip into a reserve fund.  The reserve fund is expected to run out by 2034.

"And this is due to the lower than expected earnings as a share of gross domestic product in 2016 and 2017," Goss said.

Without enough payroll taxes coming in, the future social security benefits could drop by 21% if the reserve runs dry.

A Bankrate study shows six in ten people don't know how much money they'll need for retirement. Financial experts say the big take-away is that everyone should strive for long-term savings.

Workers should aim to put away at least 10% and take advantage of any retirement help like company 401Ks and matches.

"It's a mix of savings, 401k, mutual funds, to try to diversify yourself," said Evan Pinchuk.

Pinchuk says he saves as much as he can, thanks to early advice from his parents.

The same report also says Medicare, the federal government health insurance program, is also in trouble.

It is facing insolvency in 2026, three years earlier than last predicted.