Social Security's Future Solvency Faces Crucial Point

With Social Security’s 89th anniversary, the future of its solvency has become a prime concern, particularly taking into consideration the forthcoming presidential election. According to various reports, the Social Security Administration is expected to face a crucial point as estimates claim that the retirement benefits trust fund will become depleted by the time of 2033. It assumes that payments to contributors have a high chance of reducing to some 83% of the current solvency, but these changes will take place if no immediate legislative measures take place.

Taking into consideration the polls, such as the one conducted by Gallup, one should stress that approximately 80% of the American population belong to the category of highly concerned. This number is explained by the recommendations such as the one made by Republican Study Committee Chair Kevin Hern, R-Okla., who tends to propose an increase in the retirement age up to 69 to ensure the higher balance of the system. To some extent, a relevant concern is associated with the increased measures to aid the system’s balance since proposals to eliminate the cap on Social Security payroll tax have been in place. The issue of treasury lending and the potential liquidation of any link between contributions and benefits is one of the main concerns. In addition, an increasing older population and prolonging their life all put excessive pressure on the system, which requires immediate measures on a bipartisan level.