Kathleen Casey-Kirschling is the first baby boomer, born one second after midnight on January 1946. As she turns the age needed to collect social security, so will 80 million others in the near future. But many workers and government officials are wondering if Social Security will be able to support them because of the retirement of the baby boomers and the rising health costs. Also, in just 10 years, “‘we will no longer be collecting enough payroll taxes to pay Social Security benefits’”. What is causing this Social Security money crunch? Well, “when Social Security gets payroll taxes it pays out most of the money in benefits. The rest is supposed to go into a trust fund”. But, the catch is, the government has been spending this money on other programs, causing a deficit of Social Security money. And once money is taken out, it is hard to put back in. That means that Social Security and other federal programs (that are funded partly by the Social Security money) will be financially in trouble. There have been many proposals to save Social Security, but so far, most are unsuccessful.
The bad part about all of this is that when it is our turn to retire, there might not be any money left for us. This is a huge problem because the whole system might crash and burn and then we will be left to fend for ourselves.
(I heard the story from Fox News)
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4 comments:
Well, this problem really blows and I have a nagging feeling that it could have been prevended.
Doesn't the government do a national cencus every 10 years? Did they not realized that the population was growing really fast? My parents are perfect examples, my mother is one of 6, my father one of 7, my mother's cousins are 12.
The government should have figured out a plan to deal with Social Security 30 to 40 years. I mean, the government is often near-sighted, but not blind!
*30 to 40 years ago*
(typo.)
I plan to make enough money between the next couple of decades to be able to retire and not rely on social security. It would be nice, but not necessary and I feel that there are actually tons of people out there that receive social security that really don't need it. I would be willing to donate mine if I had the money, so maybe instead of worrying about not having enough money we can just change the dishing out of the funds and America will be happy again.
I heard this too. It drives me crazy that our stupid government wastes all the money that people have been saving for retirement. And it's going to be our generation that pays.
Oh, and I agree with Ryan. It would be nice not to have to rely on social security, and I hope I can make enough money so I don't need it either. But you never know in this unpredictible world we live in.
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