Whether or not it will continue how it may well continue, however, is yet another story. Actually, the controversy keeps growing within the stability of the Social Security system and for good reason - as our population continues to age, it becomes clear that adjustments need to be made when the system is to survive.

Why it's in Trouble?

Social Security is really a pay-as-you-go program. That means you have no "Social Security Trust Fund" account holding the money you have contributed throughout your working career. Funds paid into the system is usually utilized by politicians to cover other government programs that require present funding. In addition, the workers of today are paying the Social Security benefits of existing retirees. With the baby boom of the mid-century and medical advancements which have extended life expectancies, older individuals are a bigger portion of the populace. Since the retiree population grows, the number of retirees to workers adjustments. In 1950 there have been sixteen workers adding to Social Security for everybody individual collecting benefits. These days the ratio is much smaller. Nowadays there are around three workers for every beneficiary. The worker to recipient ratio is anticipated to continue to decline weight loss seniors transfer to retirement. Using the present program, in forty years a seventy years old retiree could be receiving 27 percent less than a existing recipient. With inflation, this makes Social Security an extremely shaky support net for those who need it.

Adjustments that could Occur

Within the Social Security debate there are four widespread schools of thought on funding the program now as well as in the future. Some believe your payroll taxes ought to be increased while others think general taxes should be increased to help pay present benefits.

An alternative choice is cutting current benefits to allow more income to become saved for future years. This method is very unpopular among lots who feel Social Security benefits happen to be quite low for poverty stricken elderly without any other income.

A far more realistic choice is to extend the retirement age when these advantages begin to pay. This is within line with long life expectancy than when the program was commenced almost 75 years back.

A final choice that has received a lot of press is voluntary individual savings accounts. Each worker would have their own account that they paid into after which collected from later on. This option targets prefunding Social Security and leaving the pay-as-you-go method.

What You Can Do

No matter which path you believe Social Security ought to consume the near future, don't forget to make other plans for your retirement savings. Social Security should not be the sole income you have when you retire. It is simply intended like a safety net. To fund your retirement you should have a piece related pension and/or a business retirement program like a 401k strategy in addition to a personal savings program in which you save a minimum of 10% of everything you get.

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