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Will the Social Security System Go Broke in the Next 20 Years?
(By – Brian Stoffel, Dan Dzombak, and Dan Caplinger)
It’s no secret that Social Security, in its current form, is in trouble. Many young workers today are told to plan for retirement as if Social Security will no longer be around. And many soon-to-be retirees lose sleep over whether or not their safety net will be in place when their Golden Years begin. The reason for the pinch is clear. The program has current workers pay for the benefits of retirees. If there’s a relative balance between the number of workers and the number of retirees, then the program runs fine. But with a wave of baby boomers entering retirement — and living longer than any generation before them — the program is out of whack and spending much more than it’s taking in.
Trustees estimate that the Social Security Trust Fund will run out of money around the year 2033. But what exactly does that mean? We asked three Motley Fool analysts whether they thought the program would go broke within 20 years. Here’s what they had to say. Read more…