There isn’t a government program more controversial than Social Security. Maybe Obamacare, but that’s it!
Social Security has been in place for generations. It was instituted a long time ago, by President Roosevelt. The idea was to provide security for people, when they became too old to work. But things have changed since the 1930’s.
People are living longer. The cost of living continues to rise. Social Security just can’t provide the kind of support it once did. Plus, there is the inconvenient fact that the money you paid into when you were young was spent a long time ago.
Many predict a swift end to the program. It might not be very long before it’s gone for good. That’s why it comes as no surprise how people responded to a recent report.
From The Motley Fool:
Social Security is an essential part of financial planning for most Americans. By providing regular monthly income throughout your lifetime after you reach retirement age, Social Security provides a type of financial security that’s hard to match with other assets.
Yet many people fear for Social Security’s future. Many have pointed to a long-term catastrophic financial breakdown of the program, and while the worst fears of Social Security disappearing entirely are overblown, the odds of some reduction in benefits in are rising. In a dramatic shift in sentiment, fewer than half of retirees believe the value of future Social Security benefits will be at least as high as what today’s recipients get right now, according to the just-released 2018 Retirement Confidence Survey [opens PDF] from the Employee Benefit Research Institute. Those fears are justified, and it’s easy to see several ways that Social Security benefits could shrink from current levels.
The number of current retirees expressing confidence in the sustainability of current retirement benefits under Social Security fell sharply in 2018, according to the EBRI survey. Only 7{75726800c12fe2ebed14402fd98444a61f7eda42751f92330bc58faf20bd8821} of those surveyed are very confident that the Social Security system will continue to provide benefits of at least equal value to the benefits received by retirees today. Another 38{75726800c12fe2ebed14402fd98444a61f7eda42751f92330bc58faf20bd8821} were somewhat confident. The total of 45{75726800c12fe2ebed14402fd98444a61f7eda42751f92330bc58faf20bd8821} was down six percentage points from last year’s survey.
Millions of Americans collect Social Security from the government. Some rely on it to get by. But as time goes on, things are going to get worse.
The burden of SS will become too great. Without a massive hike in taxes, it might not survive. Add to that younger generations are frustrated that their money is being given to somebody else. It’s not unfair to say that future voters might support lawmakers who promise to end the program for good.
This poll speaks volumes of how people are feeling. Right now, Americans already see the writing on the wall. Social Security might not survive another generation.
Perhaps it could be saved, with strict reforms and changes. Experts frequently discuss ways the program can be remedied. Change the age of which someone can receive benefits. Adjusting various factors. A few modest improvements could mean SS survives.
But will that happen? Lawmakers are always reluctant to make changes to long-standing programs. It’s too much of a risk. If they don’t, however, it could spell catastrophic failure for the program. And for the millions of Americans who depend on it.
Source: The Motley Fool
