Time Reported Social Security Will Run Out By 2034
Time just reported that the social security fund could run out by 2034 based on an annual report by the trustees of the Social Security system. They believe the funds that pay benefits may run out by the time today’s 48-year-olds retire.
The estimate is based on recent economic and demographic projections, so it could change each year. Last year’s estimate for depletion was actually 2033.
Let’s try and break down what a depletion might mean…
Obviously, the total Social Security benefits will not run completely out by this estimated date, but if nothing changes, those who wish to retire and use this money may only have a portion of what they were promised.
If everything stays exactly the same, the current workforce will fund approximately 79 percent of these benefits. Basically, the entire system is a pay-as-you-go program that almost works like a savings account.
The real issue is perhaps the economy…
Can President Trump Fix Social Security?
It’ll be up to Donald Trump to help repair the economy. More money going in is supposed to mean more money going out.
Social Security was never specifically created to work on money saved. Today’s taxes pay for today’s retirees, but these retirees were promised more money than the current workforce is paying. They expect it to work like a savings account. They were compelled to pay in– they are entitled to be paid.
However, politicians have muddled they system so badly, we’re bailing out water of a sinking boat. Proposals to keep the system for a long-term plan will either mean raising the retirement age or adjusting the formulas.
Currently, Trump wants to keep things as-is and work on the economy.
Now watch this…