THE RIPON FORUM
"Making Social Security Last For All"
by Tom Cole
Since its creation in 1935, Social Security has been a reliable resource for retirees, and while the program was initially created to keep senior citizens out of poverty, Social Security now represents more than 50 percent of income for the typical retiree.
However, with the impending retirement of the largest generation in American history – the baby boomers – the amount of money being paid into Social Security will be rapidly overtaken by the amount being paid out. In order to protect and preserve this important social program – and restore public confidence that their tax dollars are being well spent — it is imperative that reforms are undertaken with all due haste. If we act now, no current retiree or near retiree will have to make any sacrifices, and the program will be there for our children and grandchildren. If we continue to procrastinate, neither of these will be true.
In 2014, the Social Security Trustees’ Report stated that unless action is taken soon, the Social Security Trust Fund will be exhausted by 2034. Since Social Security is self-financed through income tax revenues and interest, it has had a consistent source of funding that has allowed benefits to keep pace with inflation. In fact, for years, it has collected more revenue than was necessary to pay benefits, and allowed for creation of a Trust Fund that contains the surplus.
However, demographic changes since 2010 have seen Social Security expenditures rapidly expanding, and the Trust Fund will soon start to be depleted. Most Americans understand what that means in their own households. If your bills continue to increase while your income decreases, and you start spending your savings rather than reducing your bills, pretty soon you will have no savings, too little income, and you will not be able to pay your bills. Without significant reforms, there will come a time when Social Security will be unable to pay its beneficiaries.
To read more, please click www.riponsociety.org/article/making-social-security-last-for-all/
found @ 1004 likes ON 2017-02-24 19:07:50 BY ME.ME