WILL IT BE THERE FOR YOU?
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Nearly 45 million Americans currently receive Social Security
benefits. Social Security will begin running into cash problems around
2010 when approximately 76 million Baby Boomers begin to retire. Around
this time, taxes will not be enough to pay out Social Security benefits.
However, interest from the bonds invested in by Social Security trust funds
should be able to cover benefit payments for another twenty years or so.
The Social Security Board of Trustees predicts that by 2035,
Social Security will be able to cover only 75 percent of all Social Security
benefits. If you are retiring within the next ten to fifteen years, your
benefits will probably be fully covered.
Many factors will decide whether these predictions come
true. More people in the workforce and a stronger economy could lessen the
problem. Possible solutions to the Social Security problem include
privatizing Social Security, raising payroll taxes, increasing the retirement
age, changing the 35-year earnings average to 38 years, and allowing Social
Security trust funds to be invested in the stock market.
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