Social Security: The Year 2035 and it’s Demise

The destruction of Social Security. Most see it as inevitable. By the year 2035, some project it will be insolvent. Others are more optimistic in that it will still be around, but provisions will be made to maintain its existence. In either case, it’s wise to look at planning for retirement pragmatically. In order to take this approach, looking at the economic projections makes sense, and developing a plan without social security income would be prudent as well…even if Social Security stays around after 2035.

If it stays around, some things will be utilized to extend the program. First off all, the US Government will raise taxes. They would look at raising the payroll tax that is used to fund Social Security. Also: I would not be shocked if all marginal income tax rates are increased. Next, the US Government would seek to extend the retirement age, the age where one receives Social Security, to an older age. This will allow more time for people to contribute into the so called “pay as you go program”.

Here is a interesting analysis on the current plight of social security: https://econimica.blogspot.com/2019/11/indefensible-conclusions-why-social.html

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