No, Social Security Isn’t Bankrupt. But It Is Struggling, Here’s Why.

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No, Social Security Isn’t Bankrupt. But It Is Struggling, Here’s Why: Via ForbesAdvisor

In 2021 dollars, a person with the same earnings history who retires at age 65 in 2045 can expect an annual benefit of almost $21,300. That’s thanks to the frequency of Social Security’s COLAs.In their annual reports, the Social Security trustees calculate a 75-year outlook for the program. Back in 1983, the report showed a 75-year surplus of 0.02% compared to a 3.54% deficit now.

Meanwhile, people are living longer, which means they’re spending more time collecting benefits. Toss in the fact that 10,000 people are retiring every day, and Social Security as currently designed will eventually require benefit cuts or reform. “They’re saying, ‘Let’s focus on things we can do now, and we’ll focus on that when we get closer,’” said Timothy Steffen, director of tax planning for Baird Private Wealth Management.

 

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