America’s Social Security Crisis
Social Security has been around for a while(since 1935), but it’s going to have to change in order to survive through its 100-year anniversary. Before we discuss these possible changes and their pros & cons, here is a brief description of what Social Security is and why its imminent doom matters to working Americans.
Social Security is basically a program that takes a 6.2% chunk out of every worker’s paycheck and puts it into two giant trust funds. Once these employees are old and retired, they get all of their contribution(and more) back in the form of a monthly check. The system works because there is a constant cycle of current workers paying for the previous generation; although participation is mandatory, every worker benefits. Furthermore, the legal retirement age is constantly being raised, and penalties for taking money out of the fund increase for younger people. While early retire-ers can get payments as early as 62, they’ll be heavily reduced, meaning some recipients won’t get their full money’s worth. So, what’s the problem?