I opened the Social Security Statement today and was quite amused to read the following statement that was highlighted in the center of the page:“Will Social Security still be around when I retire?
Yes. The Social Security taxes you now pay go into the Social Security Trust Funds, and are used to pay current beneficiaries. Because people are living longer and the birth rate is low, the ration of workers to beneficiaries is falling. Therefore, the taxes that are paid by workers will not be enough to pay the full benefit amounts schedules. However this does not mean that Social Security benefit payments would disappear. The Social Security Board of Trustees now estimates that based on current law, in 2037, the Trust Funds will be depleted. Because people are living longer and the birth rate is lower, the ratio of workers to beneficiaries is falling. Therefore, the taxes that are paid by workers will not be enough to pay the full benefit amount. Even if modifications to the program are not made, there would still be enough funds in 2037 to pay about 76 cents for each dollar of scheduled benefits.” Er… so, correct me if I am wrong, in plain English this says that all these figures on the other side of this page are bullshit, because the money that I am paying to the fund now are being spent to pay current beneficiaries and there will be little to no money left by the time I may retire (2037 is long before I reach retirement age). Well, thanks for the honesty!