Why is the Social Security system facing problems?
As the recent Social Security Trustees’ Report reminded us, the program remains on an unsustainable course, requiring prompt, responsible and bipartisan action to fix the program for our children and grandchildren. America’s changing demographics are at the heart of Social Security’s pending insolvency. It used to be that 16 workers paid taxes to support one retiree, but that ratio has dropped to nearly 3-to-1 today and will be 2-to-1 by the time today’s young workers retire. By 2017, Social Security will be paying out more in benefits than it takes in. By 2041 when younger workers begin to retire the system will be bankrupt. Why is it important we act now to strengthen the system? The sooner we address Social Security, the better it will be for all Americans. First of all, the longer we wait, the more expensive the solution becomes. The Social Security trustees recently reported that every year we wait to fix the system will add an additional $600 billion to the cost of reform. Second
