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The Future of Social Security

If you are like the majority of Americans, you are wondering why Social Security is in trouble and what can be done to ensure that Social Security will be around in the future.

It is true that Social Security benefits are experiencing financial problems. While the current retirees and near-retirees will not be affected by the crisis, Social Security problems are very serious for future generations of retirees. Some of the factors contributing to the problem are as follows:

• People are living longer
• The baby boomers are nearing retirement
• The current birth rate is low
• Thus, a large drop in the worker-to-beneficiary ratio

At the current rate of decrease in the worker-to-benficiary ratio, there will not be enough workers to pay scheduled benefits at current tax rates. Social Security benefits will not be sustainable without a substancial infusion of additional revenue. Unless something is done, younger generations will be bearing heavier payroll tax burdens with only the hope of little to no Social Security benefits for our younger generations.

Social Security is a big deal! Social Security provides most of the elderly with their major source of income. For twenty percent of Americans, it is their only source of income. Social Security also helps provide benefits and support to children who have lost a parent. Social Security also provides most American workers with their only source of long-term disability income.