Since 2010, Social Security’s funding mechanism has been taking on water. The number of workers supporting a growing number of retiring baby boomers is not sufficient to pay all the benefits they are due.
‘Trust fund’ draw down
Since there are not enough payroll taxes being collected day-to-day, money is drawn from Social Security’s “trust fund” reserve to meet the shortfall. The $2.8 trillion reserve grew out of payroll tax increases initiated in 1984.
Reserve depletion, 2034
When the trust fund reserves are depleted in 2034, retirees will collect only what the workers’ payroll taxes can provide: about 79 percent of benefits. So, for example, instead of an annual $18,000 benefit, a retiree would receive $14,220.
Thursday, October 27, 2016
Social Security Funding Problem In 3 Pictures From BloombergPolitics
Posted By Milton Recht
From BloombergPolitics, "How the Next President Could Save Social Security" by Dave Merrill and Chloe Whiteaker:
Posted 10/27/2016 01:21:00 PM