Ten years ago, at the peak of the global financial crisis, the Board of Trustees which oversees Social Security in the United States issued a stark warning:
They projected that Social Security’s enormous trust funds would completely run out of money in 2039.
Naturally nobody paid attention. Back in 2009 the economy in shambles, so focusing on a future economic crisis that was more than three decades away was a low priority.
And for the past decade, the US government has continued to ignore its Social Security problem.
But it’s become much worse.
Ten years later, the Board of Trustees now projects that Social Security’s primary trust fund will run out money in 2034.
That’s five years earlier than they projected back in 2009. And it’s only 15 years away.
Now, 15 years might seem like a long time. But take a minute to grasp the magnitude of this problem:
According to the US government’s own estimates, Social Security and Medicare combined are underfunded by $100 TRILLION.
$100 trillion is literally more than FIVE TIMES the size of the entire US economy. And this giant fiscal chasm is actually growing.
The big problem for Social Security is that tax revenue is no longer enough.
Every worker who is legally employed in the United States currently pays roughly 15% of his/her wages each month to help fund Social Security and pay benefits to retirees.
But there are now so many people receiving Social Security benefits that all the payroll tax revenue is no longer enough.
Social Security also derives a portion of the income it needs to pay benefits from the investment returns on its $3 trillion worth of assets.
Problem is– Social Security is...