Here’s Why Social Security is No Longer Sustainable
With a cost of about $1.5 trillion, Social Security accounts for more than 20 percent of the federal budget. The bulk of that — $1.3 trillion or 86 percent — is for retirement benefits. That enormous amount is understandable when you consider 51.8 million retired workers received retirement benefits last year, along with their 2.6 million spouses and dependents.
USA Facts broke down all the facts and figures surrounding Social Security, and the findings are quite interesting. With this knowledge, it’s easy to understand the insolvency issues.
Let’s Look at the Numbers
For instance, the number of Social Security recipients skyrocketed from about 16.5 million retired workers and their dependents in 1970 to more than 54 million last year. The article points out that the figure is not surprising when you consider that “the share of people 65 and older has nearly doubled since 1957.”
Obviously, with more people reaching retirement age and longer life expectancies, coupled with fewer people entering the workforce, the Social Security trust fund is being depleted. Estimates suggest it could reach a deficit by 2034, at which time it will no longer be able to pay full benefits. Retirement benefits could be cut by more than 20 percent.
A Solid Solution
Fortunately, there is still time to shore up Social Security and ensure retirees receive the full benefits they have earned.
The Seniors Trust believes the best way to protect and expand Social Security is with the Social Security Expansion Act. Not only will this landmark piece of legislation resolve the solvency issues, but it will increase benefits by $200 per month, implement a fair Cost-of-Living Adjustment (COLA), and legally guarantee the current and future benefits of all Social Security recipients.
The Seniors Trust is working to pass the Social Security Expansion Act. Please sign our petition to Congress and join us as we strive to improve the lives of senior citizens.
