The idea of retirees getting money back from paying taxes for decades is a lovely one, but a new analysis screams 😱 a warning that we’re getting to the point where it just isn’t realistic anymore. This is a problem that impacts all Americans in a big way – and the impact gets bigger for those who are younger – and something we simply can’t ignore!
Here are Five Fast Facts about America’s huge Social Security problem:
- 🧓 What’s At Stake? According to a new report, if Congress doesn’t do anything, then Social Security runs out of money by 2033 (which is two years EARLIER than they had predicted!) That means less money for people who rely on SS payments in their golden years. They won’t be golden anymore (silver, at best!)
- 🤔 ❗ Why The Difference? They used a much more realistic birth rate and inflation rate in their calculations. The Social Security Admin’s own report was, shall we say, overly optimistic on both figures. We’re not saying they’re deliberately misleading everyone, but…
- 🤝 ⁉️ The Back History - When Social Security began, it was a 2% tax and promised to never take more than 6% of workers’ paychecks. Now, it takes over 12%, and even that isn’t enough to cover costs. Unfortunately, those costs are still increasing rapidly, too. A government program with costs spiraling out of control? Shocker.
- 💸 The Impact By Decade - If those cuts kick in, Americans born in the 1960s will have a 19% reduction in their lifetime benefits, Americans born in the 1970s will have a 26% reduction in lifetime benefits, and Americans born in the 1980s-1990s will have a 27% reduction in lifetime benefits. Can we get a refund?
- 😭 The Overall Impact - So what do these cuts mean to you? Well, if Congress doesn’t do anything, SS checks starting in 2033 get cut by 23%. The program will run out of money before Americans who are 56 or younger now start drawing checks. Kids, just plan on 0 and hope for a pleasant surprise.
🔥Bottom line: This is serious. Getting Social Security back to full funding for the next few decades will require a big tax increase right away (from 12.4% up to 17.3%). For a family making $71k, that’s roughly another $3500 in taxes!
Unfortunately, our elected representatives are not serious. They’ve been overspending and kicking the problem down the road for decades. We may be on our last kick, so it’s time to demand accountability and action from your representatives.
What do you think should be done about our Social Security crisis?
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