Lawyers Answer: Are My Social Security Benefits Safe?
Next month Social Security reaches its 80th anniversary – on August 14, 2015. Established in 1935 by President Franklin Roosevelt, the Social Security system was put in place to assist “the most vulnerable members of the American public.”
And – while the Social Security Administration has planned several celebratory events, such as an “America’s Favorites: Baseball, Hot Dogs, Apple Pie & SSA Night” that includes a ball game between the Baltimore Orioles & the Oakland A’s – many people are wondering how long the Social Security system can last before running out of money!
Will Social Security Run Out of Money? Long Beach SSD Lawyers
Current predictions indicate that – unless major changes are made – the Social Security trust fund will run out of money in 2037. After that point, it is predicted that retired workers will generally expect to receive about 75 cents on every dollar of their scheduled benefits. This is because once the Social Security “trust fund” is depleted, there will be no money surplus left to cover benefits.
Here’s how it works: The Social Security program is funded through the “FICA tax” that is taken out of all U.S. employees’ pay. The employee and the employer each pay 6.2% of your wages, up to the taxable maximum. (Note: Self-employed individuals pay the entire 12.4% themselves.) Social Security benefits are then “paid out” to whomever qualifies for Social Security, from the amounts collected from this tax – and any money that isn’t paid out in benefits is held in the Social Security Trust Fund.
Why is Social Security Running Out of Money? Long Beach SSD Lawyers
Americans are having fewer children – which means fewer workers are “paying in” to Social Security. This is coupled with the fact that American’s are living longer, which means that each individual collects Social Security for more years. On top of that, the difficult employment situation often forces people into taking their Social Security benefits earlier than if they were gainfully employed.
So, what does this mean to you? Well, if you are in your forties or fifties today, you may not have access to Social Security benefits during retirement, even though you’re paying into the system now – unless changes are made.
While Republicans, Democrats and Independents all have differing opinions on how to “fix the system” – all agree that something has to be done soon, to prevent bankruptcy of the Social Security system in the next 20 years. Various solutions include: Increasing taxes; decreasing benefits; and, upping the age at which people can begin to collect benefits.
Social Security Lawyers in Long Beach Can Help You
If you are considering applying for Social Security or Social Security disability benefits, this issue is indeed of concern to you. Our experienced lawyers are here to discuss your Social Security application or appeal to insure that you receive the maximum benefits to which you are entitled – while there is still money left in the Social Security System.