This week, Craig Siminski, of CMS Retirement Income Planning, shares an article discussing demographic trends that are dimming Social Security’s financial outlook and proposals to address the looming shortfall:
Social Security is a pay-as-you-go system, which means today’s workers are paying taxes for the benefits received by today’s retirees. However, demographic trends such as lower birth rates, higher retirement rates, and longer life spans are causing long-run fiscal challenges. There are simply not enough U.S. workers to support the growing number of beneficiaries.
Social Security is not in danger of collapsing, but the clock is ticking on the program’s ability to pay full benefits.
Each year, the Trustees of the Social Security Trust Funds provide a detailed report to Congress that tracks the program’s current financial condition and projected financial outlook. In the latest report, released in August 2021, the Trustees estimate that the retirement program will have funds to pay full benefits only until 2033, unless Congress acts to shore up the program.
This day of reckoning is expected to come one year sooner than previously projected because of…
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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 23 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.
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