The Biggest Problems Facing Social Security - AMAC & gobankingrates.com
John Csiszar has written five books and thousands of articles about financial services and personal financial planning. Here he explains in simple terms the structural problems and economic reasons why Social Security is facing insolvency in the near future. These are the factors he addresses in this piece: Low Interest Rates; Longer Retirements; Too Many Beneficiaries; Not Enough Workers; Wealthier Individuals Live Longer; Federal Reserve Policies; Can’t Grow Our Way Out; Effects of Economic Contraction.
Csiszar even explains the potential trouble for beneficiaries born in 1960 who may seek to start benefits at age 62 in 2022. Average wages are a calculation used to index people’s benefits for inflation. They were depressed in 2020 due to pandemic, though less than most experts originally predicted.