Why Social Security Math Just Doesn’t Add Up

Personal finance guru Dave Ramsay says it’s understandable why people are worried about their future Social Security retirement benefits. In an article by The Street, Ramsay explains that the increasing number of retirees receiving benefits compared to the number of workers paying into the Social Security system is certainly concerning. As he explains, the math just doesn’t add up.

According to the article, “the benefits that one Social Security recipient receives are paid for by the taxes of 2.7 workers. But the number of workers per beneficiary is growing smaller as more people retire and live longer lives.” The number of beneficiaries is expected to jump from 61 million to 77 million in the next 10 years. By 2035, the number of workers per beneficiary will decrease to 2.4. That deficit will likely result in substantial benefit cuts.

But there is a solution. The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and will ensure the long-term solvency of the Social Security program.