Social Security Reform: A Worldwide Dilemma - Forbes
For all of the rhetoric in Washington D.C. about potential “cuts” to Social Security, the discussions never seem to include a sobering fact: American demographics have changed dramatically over the years to the point that the current Social Security model cannot pay full benefits to all future generations. Simply put, Social Security income is now less than expenses needed to pay benefits and, unless the program is reformed soon, everyone’s benefits will be cut by about 23% in about 10 years.
Considerably less known is that the United States isn’t the only country facing this issue. Indeed, France and Belgium are already focused on reforming their Social Security programs due to demographic changes, and China recently also announced that their social retirement age is about to be increased. It is just a reality – people are living longer and the number of beneficiaries is growing at a fast pace, while the number of workers contributing to the program is growing more slowly. Basically, Social Security reform is happening worldwide, and the U.S. Social Security program is no exception. All of this is spelled out in this Forbes article by Howard Gleckman, emphasizing the fact that U.S. Social Security reform, including an increase to the standard full retirement age, is inevitable. Click here to read more.