The social security system is a problem for the future, and even though this is not new, or the fact that it has occurred before, this seems to be the first time that nobody appears to have the foggiest idea of how to solve it.
The country is very polarised, and for any solution that a side puts forward, the other side dismisses it almost immediately as soon as it is proposed and there appears to be no middle ground of the potential solution.
The Problem With Social Security
Social Security is in deficit, wording it; the program is likely to pay out more in scheduled benefits than it receives in payroll tax revenues because of the massive exit of the baby boom generation from the workforce to retirement.
This usually would not be a problem, Social Security has trust funds to make up that shortfall. However, this has been deposited into those trust funds, and once those trust funds are depleted, Social Security is forced to cut all its benefits to balance the deficit.
What Course Of Action Should Future Retirees Take?
It is fewer opportunities for those who are still working with the opportunity a lot more convenient for those depending on the program. Ensuring that you have enough to sustain yourself when you finally decide to quit work will be the first step to saving more and grabbing all the policies that the IRS has deployed to enhance tax-advantaged 401(k) or IRA accounts.
To help with this, the IRS has rules that let workers over 50 put in more money than usual into their retirement accounts.
