For Americans who still have a good 30 years left in the workforce, the anxiety surrounding the collapse of the social security fund is far too real. In her new blog post, Lorie Konish outlines the current statistics on the reserve funds, theorizes on the future of the program, summarizes the benefits you are currently entitled to and addresses what the younger generation needs to start doing to avoid being in a financial crisis in the event the social security program fails.
- While the Social Security Trust Fund is on pace to run out in 2034, almost everyone expects Congress to act before then with a combination of tax increases and benefit cuts.
- Any changes to Social Security would be unlikely to affect current or near retirees, but could create uncertainty among those who are below age 55 when the crisis hits.
- In 1982, when Social Security costs last exceeded income, Congress responded by increasing the age at which retirees receive their benefits from 65 to 67.
“The idea that Social Security would dip into its trust fund to pay for benefits comes as no surprise, said Christian Weller, professor of public policy at the University of Massachusetts at Boston and senior fellow at the Center for American Progress.”