A few things worth considering related to Social Security, especially if you’re a few years away from retirement….
In 2015, $900 billion was spent on social security.
In 2005, $530 billion was spent on social security.
The work force has dropped 4.5% since 2000.
We’ve nearly doubled Social Security expenditures in 10 years and simultaneously seen a drop in the work force that funds it. Key the dramatic Michael-Meyers-is-behind-the-bedroom-door music folks ’cause we’re looking at trouble.
In spite of our borrow and spend mentality – by Congress that is – it’s actually illegal for the country to borrow money to keep Social Security in the black. Huh? “Does not compute” you say. “I thought that’s how we solved all of our problems.” Sorry folks, time to be grown ups.
Whatever the answer, it’s quite likely that by the year 2030, Social Security will look very different than it does today. The primary differences will be in who gets it and when eligibility kicks in. So if you won’t be retiring for a few years, your financial planning should likely not include Social Security. Oh and one more thing, along the way the government will be dipping into your pockets to start paying back the 10’s of trillions of dollars of debt.