Social Security Will Go Broke in 21 years

Categories: Retire

Source: Wall Street Journal 4/24/12

Reported yesterday that earlier estimates were 24 years, but now 21 years. If reserves for disability benefits were combined with retirement, reserves would be exhausted by 2033. Social Security and Medicare account for 1/3 of the federal budget. If the trust funds are not replenished, then benefits would be reduced by 25%.

Everyone should be concerned about this, even those that are already retired, since people are living much longer these days. 

Year of birth Full retirement age (FRA) Your Age this Year Years to retirement FRA Year of Retirement Age Soc Sec Reserves Exhausted (2033) & benefits could be reduced
1941 65 71 0 2006 92
1942 65 70 0 2007 91
1943 66 69 0 2009 90
1944 66 68 0 2010 89
1945 66 67 0 2011 88
1946 66 66 0 2012 87
1947 66 65 1 2013 86
1948 66 64 2 2014 85
1949 66 63 3 2015 84
1950 66 62 4 2016 83
1951 66 61 5 2017 82
1952 66 60 6 2018 81
1953 66 59 7 2019 80
1954 66 58 8 2020 79
1955 66 & 2 m 57 9 2021 78
1956 66 & 4 56 10 2022 77
1957 66 & 6 m 55 11 2023 76
1958 66 & 8 m 54 12 2024 75
1959 66 & 10 m 53 13 2025 74
1960 67 52 15 2027 73
1961 67 51 16 2028 72
    MoneyEducate.com

A lot of people wonder if Social Security will actually go broke, and not be able to provide them with benefits. I am doubtful this will happen, given that seniors represent the largest voting block, so politicians are always very concerned about their votes. We will have to see either rapid growth in GDP or most likely  increased taxes, reduced benefits, lower or no the inflation increases and older Full Retirement Ages for younger workers, to secure these benefits. Due to the recession, declined stock portfolios, many people have much lower retirement savings and will be depending upon Social Security for a major part of their retirement. This issue is going to continue to be a hot one.

Leave a Reply

Your email address will not be published. Required fields are marked *