Social Security: Will there be any left?
Hello my fellow Rustin's, let's talk about a very important subject that could affect our way of living: Social Security Running Short. People have always joked about Social Security money pool drying up may be a reality sooner than expected. According to the Congressional Budget Office (CBO), Social Security funds are set to start running a shortfall in 2032, which is one year earlier than previously expected. That is only nine years away and will be a very harsh reality for a lot of people who depend on Social Security. We see this term on our paychecks all the time but do we really know and understand what all Social Security covers?? The term is defined as The United States Social Security Administration is an independent agency of the U.S. federal government that administers Social Security, a social insurance program consisting of retirement, disability and survivor benefits.
Retirement benefits are for workers 62 and older who has at least earn 40 credits. The size of your benefit checks depends on your average indexed monthly earnings (AIME) over your 35 highest-earning years, and the age at which you begin benefits.
Disability benefits are available to adults 18 or older who are unable to work due to a physical or mental disability that is expected to last at least 12 months or result in death. You may still be eligible even if you haven't earned 40 credits, depending upon your age at the time of your disability.
Survivors benefits are benefits for the family members of deceased workers who qualified for Social Security and Surviving spouses who are 60 or older (50 or older if disabled) may claim survivors benefits, as can surviving spouses of any age if they are caring for the deceased worker's child who is under 16 or disabled.
The Social Security program was created by the Social Security Act that President Franklin D. Roosevelt signed into law in 1935. The first checks from this program was sent out in 1940. In the beginning, the program paid benefits only to workers 65 and older, but that changed in the 1970s because the government altered it to allow workers to claim benefits as early as 62. It also instituted Annual Cost-of-Living Adjustments (COLAs) to help Social Security keep pace with inflation. Inflation is defined as the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. A prime example would be the price of food in American rising due to recalls, labor cuts and other issues within the system.
The program has worked fairly well so far, but many people fear for the future, due to fewer workers being able to support a greater number of Social Security recipients. The latest Social Security Trustees' Report indicates the program's trust funds would be depleted by 2034, after which it would be able to pay out only about 77% of benefits to retirees. In past reports, it was estimated that Social Security's disability trust fund would run dry by 2057, the latest trustee's report projects that the disability trust fund will not be depleted in the next 75 years.
The government has map out several possible solutions for ensuring the long-term sustainability of the program, but at present no plans have been set. There is no risk of the program disappearing in the next decade or two, but it's possible future benefits may not go as far as they do today. It is very important that today's workers need to prioritize their personal retirement savings, so they can cover most of their expenses on their own.
These are important benefits that most Americans depend on for daily living and financial support for themselves and their families in most cases. If the Social Security funds are already depleting at faster rate than anticipated, what is to happen to the people who are paying into it now and can not receive any help because there is nothing left??? Comment below to give your views on this issue. See you later My ATMS (Angelic troublemakers).