If you think that the government can still pay you checks by the time you retire, think again. The recession has not spared Social Security. Government officials said that the trust fund will run out by 2037 – a good four years in advance on estimates.
The trust fund reflects a $2.4 trillion surplus paid into Social Security over 20 years that Uncle Sam has borrowed, spent and promised to pay back. Trust fund exhaustion represents the point at which only 76% of benefits could be paid out.
The recession is much to blame for this forecast. With unemployment growing, many are tapping into the funds while contributions have lessened. Tax breaks because of the stimulus plan also affected the inflow of cash.
Experts see this trend to continue over the next few years with 2016 being a critical point as fewer taxes will be used to replenish the fund that the government will be forced to pay the System back.
Source: CNN
The lesson here is that it’s up to you to make enough money to live a comfortable life. You can’t rely on government.
The party line is that this is unfair. Blaming only gives power to what/whomever you are blaming.
Every person should be 100% responsible for their finanial future. Open up multiple streams of income. Or be at the mercy of government or whatever entity which you depend on for your financial stability in retirement years.
Ryan