RSSNumber of Workers per Social Security Beneficiary
The number of retired workers is projected to grow rapidly starting in 2008, when the members of the post–World War II baby boom begin to reach early retirement age, and will double in less than 30 years. People are also living longer, and the birth rate is low. As a result, the ratio of workers paying Social Security taxes to people collecting benefits will fall from 3.3 to 1 in 2006 to 2.1 to 1 by 2032. The Trustees Report projects that in 2017, when the ratio will be 2.7 to 1, there will not be enough workers to pay scheduled benefits at current tax rates. The Trustees Report also projects that redemption of trust fund assets will be sufficient to allow for full payment of scheduled benefits until 2041.
The preceding paragraph, taken almost in its entirety from Fast Facts and Figures About Social Security, 2007, does a good job of explaining one of the dilemmas of Social Security, which is that the declining demographics of the U.S. population will not support the oncoming retirement wave. Once again, however, the reader is left with the impression that the real problem is more than thirty years away when the report says that “trust fund assets will be sufficient to allow for scheduled benefits until 2041.” This statement assumes that in the year 2017 the general fund of the United States government will begin redeeming the notes (the so-called trust fund assets) held by the Social Security Trust Fund. What is never mentioned, however, is that if there is no change in fiscal policy, the government will have no choice but to borrow the money in the open market to redeem the trust fund notes.
7 Responses to “Number of Workers per Social Security Beneficiary”
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August 11th, 2008 at 7:01 pm
JimS is on target. The problem: U.S. gov’mt has GROSSLY over-promised. Solutions: either (1) TRIM back NOW on promised benefits ; or (2) DO NOTHING, and wait for a TOTAL DEFAULT in the future. Which sounds better to you?
A combination of approaches is probably needed, including: (1) gradually expanding retirement age for ALL (by 2 – 5 years); (2) gradually reducing benefits by means-testing for SOME; and (3) gradually shifting towards private style accounts.
And, God forbid that our #@*! “leaders” create any NEW “entitlements”, like the idiot Bush (i voted for him) and Congress passing the recent senior drug entitlement law. Talk about throwing gas on the fire!
Sadly, reform will likely never happen because it requires something more rare than weapons-grade plutonium: political courage and leadership. McCain doesn’t have it, and Obama SURE doesn’t have it. Wish we had a democrat like Andrew Jackson or republican like Lincoln again!
September 5th, 2009 at 8:48 am
I have read comments for several mornings,nice to see that so many have the same concerns I have with the pickle our politicians have us in.Thankyou Mr Perot for this site.Our politicians at least most of them have no idea how the working class lives they are all wealthy,ya have to be to run.Also they have their own retirement plan so we cant count on them to make the right decisions.We used to be one of the most weathy countries in the world!So what do we do,we sign NAFTA not free trade but free labor! lowered our tax base and it was all down hill from there.How many good paying jobs that had a retirement plan in place for their employees was lost to NAFTA.I often wonder,our the politicians that pushed it through thinking,wow maybe nafta wasnt a good idea.I voted for Mr perot wish there would be another like him.