Social Security in the red

Society Security is running almost $50 billion in the red each year, deficits that are being covered by reserves in the General Fund, reports the Kipsap Peninsula Business Journal.

But because the number of people getting benefits is outpacing the number of people footing the bill, the program will be insolvent in 20 years.

When Social Security started in 1935, the employer and worker each paid a one percent tax on the first $3,000 of earnings. Today, the tax is 10.4 percent on the first $110,000 in earnings–and it’s still going broke.

Social Security worked back in the ’30s because the average life expectancy was 58 and benefits didn’t start until age 65. In other words, Social Security worked because not many people lived long enough to collect benefits.

Today, people are living longer and retiring earlier.

In 1935, when Social Security began, there were roughly 16 workers for every beneficiary. Today there are just 3.3 workers per beneficiary, and officials project that in 18 years, there will be just two workers paying for each person collecting Social Security benefits.

We’re going to have to look at changing the benefits. But historically, such suggestions have hit a brick wall.

A lot has changed with Social Security in the 77 years since its inception. The math worked back then–it doesn’t work now.

Read more.

If you or someone you know needs help with Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.

Reach out to a Terre Haute Personal Injury Attorney Today

The financial burden that often comes with a serious injury can be too much for many people to bear. Unexpected medical debt, damaged personal property, and the sudden loss of income can impact the budgets of most families. The good news is that a successful injury claim could help reduce that financial strain after a serious accident. Get in touch with a Terre Haute personal injury lawyer with Fleschner, Stark, Tanoos & Newlin to learn more.

    *You agree to our Terms and Privacy Policy, and you are providing consent to receive communications including calls, emails, and texts.