The purpose behind Social Security is to serve as a foundation for economic and monetary security for retired and disabled Americans. It’s money taken from the paychecks of each American – without question – that’s designed to provide you with a little bit of guaranteed income upon retirement. You have three options when it comes to collecting your Social Security; taking benefits at 62, at your full retirement age, or waiting until you are 70. Unfortunately, in recent years it has come to light that you just can’t count on having your Social Security income when you reach age 62. Why? Read on to find out.
Government Borrowing
The money you pay to Social Security is supposed to go into an earmarked account for your retirement. Unfortunately, it doesn’t. The Social Security wages you pay is often borrowed by the government to fund other “ideas” and projects. The government actually relies on the Social Security money paid in by Americans to pay their own debts. The government uses Social Security for its own needs in hopes that those paying it now can fund those who receive it now, and that this cycle will continue to keep Social Security funded.
Retirement Age Increases
Many politicians are in favor of increasing the Social Security retirement benefits age. What does this mean for you? Right now, you might be able to get some of your benefits at 62, the rest at 66 or 67 or more at 70. However, by the time people in their 20s and 30s reach retirement age, retirement age will be much older than 62 or 66 or 67 or 70, in which case benefits will not be paid out until years later. You might not even be alive at this point.
Social Security Privatization
If the government were to push to privatize Social Security, it would mean you have to rely on your own retirement accounts to fund your retirement. While this is a great option for those in their 20s and 30s, it’s not so much for older Americans who’ve not privately funded their own retirement. Either way, don’t count on your Social Security, because if this happens, it won’t be there.
Social Security is Running Out
Yes, it’s true. Unless there is some sort of Social Security reform passed in the next few years, there will be nothing left to pay to beneficiaries by the year 2041. The funds in the Social Security account that the government pulls from will be tapped completely out, even though payers are still having 12 percent of their income taken from their checks and put away for their “retirement”.
Federal Deficit
As long as the United States continues to rapidly increase the federal deficit with no way out, Social Security is in danger. Unless the government creates a realistic budget, sticks to it, and makes it work, the future of Social Security is grossly unknown and likely not possible.
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