Social Security is set to go insolvent without reform
Social Security is the bedrock of the U.S. retirement system. Over 70 million Americans currently collect Social Security’s retirement, disability, or survivor benefits, and more than 230 million more expect to receive those benefits when they are needed. The 90-year-old program is internally financed by a 12.4% payroll tax split between worker and employer on each worker’s first $184,500 of income, with current taxes supposed to pay current benefits.
TL;DR
- Social Security is projected to be insolvent in six years.
- The program's projected shortfall has increased by 16%.
- There is a lack of discussion among political candidates regarding Social Security's crisis.
- The article calls the lack of plans for Social Security 'leadership malpractice'.
- Novel trust fund solutions are suggested as a potential way to address the issue.