Since 1953, Social Security has provided much-needed income for seniors once they enter retirement. We all pay into Social Security through payroll taxes, so it’s understandable that we expect the money to be there waiting for us when we quit working. And most likely, it will be.
However, the Social Security system may face a budget shortage in the future. Current benefits were scheduled when there was a surplus in the budget, but the number of aging Baby Boomers now retiring is outstripping the amount of money funneled into the system through taxes. This means that we’re currently exhausting the former surplus in the budget, and by 2033 the Social Security Trust Fund may only be able to pay out about 77 percent of scheduled benefits.
Policy makers have proposed several feasible plans to fix the Social Security budget crisis. Naturally, we all hope that the Social Security deficit will soon be fixed.
So what can you do about this problem? Be proactive! As politicians debate solutions to the Social Security situation, educate yourself on how your representatives plan to vote. It’s your right and responsibility to write to them and express your views, and to vote accordingly. As a soon-to-be retiree, your voice is valuable in this discussion.
Also, keep in mind that Social Security was never intended to be your only source of retirement income. It has always been considered a supplementary income by retirement specialists, and should continue to be viewed that way. Everyone needs savings, investments, pensions, or other retirement income in order to ensure a comfortable lifestyle in retirement. Talk to your insurance agent about foolproofing your plan for retirement income, so that you will enjoy a secure retirement, with or without Social Security.
13697 – 2014/9/10