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M*: Should Social Security Be Group Insurance, Or Individual?

FYI: Eventually, the United States will confront the problem of Social Security funding.

Americans may be pardoned for distrusting criticism of the Social Security Administration’s health. They have been warned for decades by Wall Street investment salesmen that Social Security won’t be around when they retire. (When I joined Morningstar in 1988, that was already a familiar refrain.) Yet every year since the early 1980s, Social Security’s inflows have exceeded its costs. The Social Security trust fund has never been larger.

Eventually, though, the wolf will arrive. It cannot be prevented, as the system is currently structured. In 2019, Social Security’s expenditures will exceed its income, causing the system to tap into its trust fund. The event will not be temporary. As the nation’s retiree-to-worker ratio continues to rise, the trust fund will continue to fall. The SSA currently estimates that the fund will be exhausted in 2035.
Regards,
Ted
https://www.morningstar.com/articles/939726/should-social-security-be-group-insurance-or-individual
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