I was reading and listening to news reports on the state of Social Security in America. It is reported that SS will be bankrupt by 2033. It just so happens that I’m supposed to start getting SS in 2033 after paying into the system for 50 years. Does that mean I can stop paying into a system that I won’t get anything out of? The short answer is no. Nobody offers that as a solution.
Social Security was enacted as legislation under Franklin Delano Roosevelt’s first term as president in 1935. When it dies in 2033, it will be a painful slow death. I guess 98 is a ripe old age to live.
This article and the current estimates totally under-project the strain on the system once baby-boomers retire at about 80 million additional SS recipients. As stated in the this article, “America’s aging population — increased by millions of retiring baby boomers — is straining both Social Security and Medicare.”
What are the options? Again, the article suggest that, “Potential options to reduce Social Security costs include raising the full retirement age, which already is being gradually increased to 67, reducing annual benefit increases and limiting benefits for wealthier Americans.” Let’s see, I have to wait longer to get SS and I get less when I get there. I’m sorry, but I’m not buying that bag of B.S., and the next generation of American shouldn’t either.
If those options don’t work, then we could let them try this option. “Policymakers could also increase the amount of wages that are subject to Social Security taxes. Social Security is financed by a 6.2 percent tax on the first $110,100 in workers’ wages. It is paid by both employers and workers. Congress temporarily reduced the tax on workers to 4.2 percent for 2011 and 2012, though the program’s finances are being made whole through increased government borrowing.” Oh, so we now want to tax more of my income so I can pay longer into a system that won’t give me anything when I retire. Again, not a solution. I hope the younger generations come up with something better, because it’s clear that the current generation is clueless.
Check out Inert America on Amazon and read the chapter where I describe the Power of Ten to better understand the real dilemma of SS and Medicare.
Gary W. Griffin, Ph.D.