If you’re below a certain age, your annual Social Security statement is accompanied by a fact sheet titled “What young workers should know about Social Security and saving.”
The fact sheet explains that the Social Security Trust Funds are due to go broke by 2037 and that, as things stand now, payroll taxes won’t cover “the full benefit amounts scheduled.”
“However,” it says, “this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2037 from taxes … to pay about $760 for every $1,000 in benefits scheduled.”
Benefits won’t “disappear”? Well, that’s reassuring!
The fact sheet presents this potential 24 percent haircut for Americans around my age as a worst-case scenario. Prudent souls will recognize that, with fewer workers and more beneficiaries who live longer, it may be the best case.
I fear the temptation to “fix” Social Security by giving Washington more authority is too