Social Security: Falling Apart Faster Than Previously Thought

This past week, the Congressional Budget Office updated its annual projections on the health of Social Security - Spending to Double over Decade and Disability Claims Rising.

It's no surprise that Social Security is in trouble. But a DailyFinance report says there's some shocking news coming from the Congressional Budget Office's annual projections on the health of Social Security and its Trust Funds.

The main takeaways: Social Security is failing faster than last year's dire projection, Social Security spending will nearly double over the next decade and disability claims are high and rising. 

The report provides data and charts that say the future is ugly, calling the latest Social Security news "a stern warning of a pending financial catastrophe for a program that over 50 million Americans currently rely on — and nearly everyone working in the country expects to receive."

"Either taxes are going to skyrocket to cover the costs, or benefits will need to be cut," the report reads. "Neither option looks all that good to anyone who expects to be working more than a decade or so from now." 

Following the Congressional Budget Office's projection, a panel of CEOs suggested several changes to protect the Social Security program. A report by the Las Vegas Review-Journal reports the suggestions include gradually raising the retirement age from 67 to 70, changing benefit formulas, updating the method for calculating cost of living adjustments and including newly hired state and local workers in the system.

The report says the plan would protect those 55 and older from cuts, but younger workers would face significant changes. 

Marlene Mitchell February 16, 2013 at 02:24 PM
This whole SS issue puzzles me. The press and our elected officials give use many reasons why this has happen and many of the excuses contradict each other. The one they are hanging their hat on now is that too much $$ is going out and not enough is coming in. It certainly is the easiest for everyone to swallow but I'm not sure it's telling the whole truth. The one excuse I haven't heard in a while is that many other Government agencies have borrowed from SS and left IOU's that have not been paid back. If this is the case, and I do think there is a vein of truth to it, why haven't they paid SS back?? Why is it the taxpayer who is forced into the SS have to bare the burden, again! FUBAR by the government and their two ideas to fix it leave the taxpayer broke. Where is the accountability?!?!
Ernie Mendle February 16, 2013 at 03:58 PM
The government in cahoots with the Fed have and are systematically destroying the economy. There's a good program on the internet called Investor Zone Radio where the guy on there talks about this issue quite frequently.
Debra February 17, 2013 at 01:42 AM
You are right about this and people have known what happen all along. Seen it a long time ago. Too many hands dipping into the pot and not putting our money back.
Marlene Mitchell February 17, 2013 at 07:10 PM
I guess I get a little pissy when the Government and the press try to make the people who paid into the SS system feel guilty about wanting their money when it was originally promised. They act like WE are sucking the system dry when it has already been done by the government that should have protecting it. JMNSHO :(


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