Unless Congress steps in, the nations social security program is going to run out of money and benefits will be reduced around 2035.
What We Know:
- Social security cash expenses exceeds negative cash flow and this year gap is projected to be around $84 billion dollars. Based on the social security report the trust funds are on track to be depleted in 2034, at which point the system will be able to pay 79% of benefits from ongoing tax revenue.
- Trustees’ report said, “At the end of 2014, 59 million Americans were receiving retirement, disability or survivors’ benefits from the system: the total cost was $848.5 billion dollars. 166 million people paid payroll taxes into the system.”
- Alicia H. Munnell, director of the Center for Retirement Research at Boston College stated, “As long as people continue to work and pay taxes, social security will not run out of money.”
- Many Americans are unaware that the benefits received by today’s retirees are funded by the taxes paid by today’s workers. When those workers retire, their benefits will be paid by the next generation of workers’ taxes.
- Social security is the oldest and most popular federal income support program. With this in mind, we are fearful and questioning what’s next as we are told our social security money is slowly running out.
Something needs to change otherwise the next time we blink our eyes we are going to be in the year 2034, and trying to address this crisis then will be too late.