The need to reform the Social Security system is becoming increasingly more evident as people are living longer and the number of taxpayers per retiree is decreasing. In fact, if you carefully review your most recent Social Security statement, you’ll find a small note:
“…by 2037 the payroll taxes collected will be enough to pay only about 76 percent of scheduled benefits”.
This means that if no change is made, retirees will receive only 76 cents per each dollar of benefit starting in 2037.
As expected, politicians on both sides have very different views on what needs to be done. The Wall Street Journal recently published a very interesting graphic that asks “How Would You Fix Social Security?” and goes on to show the impact of various options with regard to bringing Social Security “out of the red.”
Take a moment and click on different scenarios. We think you’ll be surprised with what you see.