Social Security In Shambles
Updated: Sep 20, 2021
Image Source: Forbes
By Michael Argenta
September 5th, 2021
Imagine this. You are a 16 year old that just received your first paycheck. You worked 20 hours last week, but your check is not as much as you expected. You soon realize that some of your money was deducted to pay state, federal, medicare, and social security taxes. Although these may not seem relevant at the time, society depends on state and federal taxes while you may eventually depend on medicare and social security.
Financial security is what drives people to work from their first job until retirement. However, when a person retires, their income stops. Not everyone invested properly, saved enough, or even made enough in their career to retire comfortably. This is when social security becomes a critical piece of a retiree’s life.
Since its inception, the Social Security Administration has reliably paid checks in full and on time. Over more recent years, the social security fund has been depleting while the COVID-19 pandemic did not help the situation. Now, the Social Security Administration projects that it will not be able to pay full benefits to retirees by 2034. This is one year earlier than projected just last year in 2020.
Full payments by 2034 or payments to all retirees are unlikely without intervention from Congress. Whether benefit cuts take place or taxes increase soon, social security is not something that should be toyed with. It is something that people pay for from their first job to their last in order to have extra financial insurance or much needed income.