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Social Security is Going Broke!
I am soon to be one of the Americans under 50 with apparently little to no monthly Social Security benefit appearing in my bank account. The recent news that Social Security is going broke or insolvent is not welcome news. And, if Andrea Coombes with the Wall Street Journal and other pundits are correct, more bad news awaits those of you in your mid-50s or younger, and they’re saying you ‘should start making alternative arrangements for your retirement.’
“you should start making alternative arrangements for your retirement”
Those of you currently receiving Social Security benefits or those just months away from diving into the public retirement pool, are said to be protected in existing proposals for fixing the huge monetary shortfall, but all of us younger folk can expect either benefit cuts or tax hikes. Knowing the history of our government’s handling of tax money it should surprise no one if you get a little of both.
The money in the Social Security fund will, officially, be in a deficit status in 2016 (it actually is at this moment,) and completely disappear in the year 2037. Deficit status means more money will be paid out each year than they have coming in. Something must be done… and done immediately.
This is not new. Our political parties, both Democrat and Republican, have had ample opportunities over the past 10-15 years to do something about this terrible situation, but so far it’s been all talk without any action.
In 1935 the Social Security Act was enacted by Congress with the promise that your contributions would be a safety net in retirement with some monthly payments being received. Unfortunately Congress has borrowed from the fund and failed in their duty to be good stewards of your retirement safety net.
Do you realize what “insolvent” means to us? It means you’ve paid your money every working day of your life only to receive little or nothing in return when the day comes that you may need it. Consider the recent economic downturn where most people’s 401k plan balances were reduced to frustrated tears. Of course these balances are returning slowly but many Americans lost their retirement savings. How important is Social Security to them today?
Let’s not blame political parties or past administrations about Social Security’s pending doom. I would prefer to see Americans bond together and find a solution….now. Many solutions have been discussed and proposed. Here are some:
- Transition to a more personal plan that allows employees to invest their own Social Security funds
- Raise taxes
- Reform the Social Security system in total
The Obama administration is attempting to fix all of our ills (medical insurance, Social Security, and more) in record time resulting in perceived over-spending of our tax dollars leading to huge deficits. I do not want my child to pay, literally, for our problems. I do not know of a magical solution. I know it’s time for us to find one…and soon.
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