Americans are also living longer and having fewer children. Fewer people putting money into the Social Security system, and more people taking money out.
The Social Security fund isn't actually a fund — it's a debt obligation. When more money goes in the government seizes it and spends it — leaving nothing but IOUs behind. So the Social Security fund isn't really a “fund” at all.
The next decade will see the largest drop in worker-to-beneficiary ratios in history. When Social Security was first established, the worker-to-beneficiary ratio was over 15 to 1; today it's 3 to 1.
At the current rate, the Social Security "bank account" will be exhausted in 2033, when it will receive only about 77% of what it should pay out that year.
2. The government slashes the Social Security payout.
CONCLUSIONS:
US population now aged 48 will be 65 years old in 2033. Expectations of Social Security income will have to be scaled down.
Existing 65 year old retirees will encounter a scaling down of Social Security the age of 82, which is well within their life expectancy.
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