“Social Security is a simple concept: those employed are forced to contribute to a government managed fund. This fund provides for a subsistence living at retirement. In the U.S., retirees past the age of 67 receive Social Security.
However, there is a catch. The money we invest today is paid to those already retired. This colossal endeavor can only work if the money deposited into the fund is more or, at a minimum, equal to the money distributed to qualified retirees. Unfortunately, that has not been the case for several years. As a result, a deficit has been in the making. For starters, it is predicted that the Social Security fund will only last until 2037. That is only 26 years away, long before many current contributors are classified as retirees.
The Social Security trust fund is inadequately sourced. In order to salvage the almost demolished plan, we need to revamp the system. The government needs to either increase Social Security withholding, reduce the distribution of Social Security or possibly take action on both fronts.”
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