The Social Security Hole is Only Getting Deeper
Federal spending on the portion of the population over retirement age is up to 40 percent on non-interest outlays (which itself is a 35 percent increase from 2005) the Congressional Budget Office recently reported. The CBO projects this number to be 50 percent by 2029.
The CBO reports that the number of retirees over 65 is going to continue to increase by nearly 33 percent over the next ten years. Already there has been a 16 percent increase in 2018. Any way you cut it, the older population is going to be taking up a larger portion of the federal resources as we go on.
Over the next ten years, federal spending on programs intended to supplement retirees (mainly Medicare and Social Security, but also not limited to military retirement and long-term care under Medicaid) is projected to grow a whopping 66 percent.
Recently, legislation has been introduced to raise the spending limit. But to do so there were a few concessions. Firstly, to raise benefits quicker in the future, a cost-of-living adjustment was to be introduced — secondly, bigger benefits minimums for the less fortunate. Thirdly, a general tax cut for people paying money against their Social Security benefits. And lastly, a 2 percent payout increase overall.
Adversely, this contrasts what some current retirees have to say about their current living situations. Gallup reports that 78 percent (over three-fourths) claim they have enough money to live comfortably. That number is up from the last reporting in 1992, where 61 percent claimed that.
A 2014 report shows that 45 percent of retirees felt satisfied with their current financial situation, and 37 percent were ambivalent. Only 21 percent of people polled reported that they were not satisfied by the already implemented status quo.
The Census Bureau has determined that the median income in 2012 climbed from $33,800 to $44,400, nearly a third, while at the same time the poverty rate for retirees dropped by a quarter. With retired Americans numbering nearly 50 million, there should be a plan in the place to help the rest who are still struggling.
Taxing payrolls over $400,000 is one of the ways to possibly increase these funds. This could contain any deficits and increase the in-place payroll laws 4.9 percent.
Claiming either Democrats or Republicans responsible for the current deficits is only part of the issue, but until healthcare stops being political capital either side of the aisle tries to use for leverage, it is your average taxpayer, me and you, who is making up the difference.
