Tuesday, May 12, 2015

The Demise of Social Security is Much Closer Than You Think

Entitlements: Officially, Social Security has enough money to pay all its promised benefits until 2033. But a new study suggests this forecast could be wildly optimistic. And that spells big trouble for future retirees.
Every year, the Social Security Administration releases its Trustees Report, which projects the program's solvency — how much it will take in, how much it will pay out and how long the "trust fund" can cover revenue gaps — over the next 75 years.
The latest report says that Social Security can meet its financial obligations for about 18 more years. After that, the trust fund will be exhausted, and payroll taxes won't cover nearly all the benefit costs.
That's bad enough. But a new study by researchers at Harvard and Dartmouth shows that this day of reckoning will almost certainly come far sooner than that.
Read the rest of this IBD editorial HERE.

If you like what you see, please "Like" us on Facebook either here or here. Please follow us on Twitter here.


No comments: