Will Social Security Be Ready When You Need It?


Will Social Security Be Ready When You Need It?
Social Security is a "pay as you go" system in which current payroll taxes fund current benefits. But the country is getting older, and the solvency of the Social Security system is precarious. In fact, if there is no Social Security reform, benefits will begin to exceed revenues by 2012, just as the Baby Boom generation retires. Here's more.

The United States is Growing Older.
Population over 65
Who relies on Social Security benefits.
In 1994,
Social Security
  • Paid benefits to more than 90% of those age 65 or older.
  • Provided more than half of the total income for 66% of the beneficiaries.
  • Was the only source of income for 16% of those beneficiaries.
Fewer are paying to support beneficiaries
Workers per Social Security beneficiary
No change, big problems!

If there is no Social Security reform, the unfunded liability of Social Security and Medicare will be over $20 trillion by 2070.

Source: National Commision on Retirement Policy.
For more information, visit www.csis.org/retire/facts.html .

SPONSORED REPORT

Get your clients ready for tax season

Upon its enactment in March, the American Rescue Plan Act (ARPA) introduced many new tax changes, some of which retroactively affected 2020 returns. Making the right moves now can help you mitigate any surprises heading into 2022.

100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.