Social Security’s Solvency Issue: The Real Reason to Worry
One of the most persistent misunderstandings about the future of Social Security is the issue of the program going bankrupt, broke, or just plain gone. That’s not the real long-term problem, since as long as there’s a workforce paying FICA tax (also know as “Payroll Tax”), the program will have an income stream for use to pay earned benefits. Granted, without legislative action to address the problem caused by shifting demographics, these benefits may eventually shrink, but it’s a good bet Congress will be pressured into at least some form of corrective action.
The real issue is the declining ability of Social Security beneficiaries to stay ahead of inflation and its decimation of their purchasing power. An article by The Penny Hoarer’s senior writer Robin Hartill CFP Check it out here…posted on AOL.com examines this predicament, providing current thinking on the “saving for retirement.”