Although government officials have stated that they do not see Social Security actually going bankrupt, they do see the possibility of payouts dropping for many recipients if something isn’t done. The problem is, President Trump states he doesn’t see that happening anytime soon.
As many know, when it comes to our retirement years, social security benefits are something we just can not live without. We pay into the benefits our entire working lives, and as such rely on them being there when we get older.
We rely on it so much that recent studies show that three out of five of those who draw on social security depend on the benefits for at least half of their needed monthly income. This reliance is what keeps many senior and retirees above the poverty level.
The government has assured the public that social security is not in danger of going bankrupt—however that does not mean that there may not be reductions in payouts. As the system currently stand, the number of payouts will begin to increase this year, and will through the year 2034.
This is caused by a $2.9 million excess that has slowly built up since the reforms to the system in 1983. Then, the system will no longer be able to sustain the current number of payouts, which will result in a 21% cut in payout amounts until at least the year 2092. This sizable reduction in payout will put the average senior hovering just above, or sitting on the poverty line.
What this means, in a nutshell, is that the government needs to take a good long hard look at the functioning of social security today, in order to reform and revamp it for tomorrow. Possible solutions include raising revenues, as suggested by the Democrats, while also reducing long-term expenditures, as suggested by the Republicans.
Although many politicians agree social security needs to be changed to survive, no one will offer a solution as in all problems such as these there is going to be a loser—and the politicians seem to prefer that the loser be the working man rather than either of their parties.
Trump has so much as said that in order for social security, Medicare and Medicaid are going to survive, we are going to have to work on building a strong economy. By doing this, the others will fall into place. As is usual, politicians disagree with is logic, but have yet to offer an alternative that benefits the many, rather than the few.
Will a strong economy indeed help to save social security?