The Social Security program is facing some issues, which is why people are increasingly worried about whether it will still work in the future and how exactly. Given that this program is intended to provide a source of income for those who have retired or are unable to work due to a disability, as well as for legal dependents (spouses, children or parents) in the event of your untimely death, it’s clear that there is a growing concern about the effectiveness of Social Security in the years to come.
The annual report published last year by the board of trustees of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, suggests that this year’s Social Security income will exceed its expenses. By extrapolation, we can expect that by 2035 the reserves will be completely emptied. Therefore, after this year, only three quarters of the benefits of the program will be able to be insured through annual taxes.
So, it seems that the future of the Social Security program does not sound so good, which means that our future, especially of those who will retire after 2035, remains uncertain too. Let’s see why this is happening, what can be done and what the possible consequences will be.