Social Security Will Be Around When You Retire… If You Want It To Be.
There seems to be a growing opinion among 20 and 30 year olds about the United States Social Security program: that it will not exist upon our retirement, so why should we care? Perhaps I am missing something here, but the mere fact that we are paying into the Social Security program NOW, for others’ benefits, is reason enough to care! I want this program to exist in my retirement, too. But even this is only a minor reason to become more involved in the discussion surrounding Social Security as a younger person.
As of 2006, the Social Security program has provided more than $541.6 Billion dollars in benefits to over 49 million individuals. Social Security allows citizens of this country to retire with the earned privilege—an enforceable right—of an income after a lifetime of work. Social Security retirement income, with benefits also paid to spouses, widows (or widowers), minor children, and people with disabilities represents a fundamental cornerstone of our society. Because of Social Security, older Americans are no longer the poorest demographic in the country. It is the most visible symbol of intergenerational connectedness and the last remaining leg of the three-legged stool (savings, pensions, and Social Security) that its founders envisioned. Today it is the bedrock of economic security, particularly in old age, for thousands of people, especially older women. Not only do I urge you to care about Social Security, but I want to start the discussion on WHY we should all care about the concept of “social security” as manifested by the Social Security program.
What Does the Data Say About Social Security in the Long-Term?
Did your parents ever tell you not to worry about Social Security, because the program would not be around for you would not enjoy its benefits? Well, they were not exactly right. According to the “2009 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and the Disability Insurance Trust Funds” (read: Annual Report on the Social Security Program), intermediate (neither conservative nor liberal) projections for the solvency of the Social Security program are as follows:
- By 2016 the benefits program will be paying out more than it will be gaining in revenues, thus beginning to deplete the trust fund.
- By 2024 the Social Security pot of money, the trust fund, will no longer be growing.
- By 2037 the Social Security trust fund will be exhausted, empty, no money left. But income will still be coming into the system from payroll taxes so benefits will be paid but at a reduced amount.
Maybe your parents were right…? But, these figures about financing Social Security in the long-term function under a rather large assumption: that there will be no structural changes in how the Program operates. However, last time I checked we live in a democratic nation. As citizens, we have a choice to demonstrate our commitment to Social Security so that benefits can be available IN FULL when we retire.
Advocates for Social Security are equipped with many ideas for how we can change the structure by which the Program operates, giving it full financial sustainability beyond 2037, when WE retire. Social Security’s problems are political, not financial. Contrary to popular opinion it is not in crises; it does not contribute a single penny to the deficit. In fact, it is in surplus.
A Call for Your Voice to be Heard: Focus Group
In an attempt at brevity, I will close this blog article with an invitation to continue the discussion. Health & Medicine Policy Research Group (HMPRG) wants to talk with you. HMPRG will be hosting a focus group for individuals in their 20s and 30s on Social Security. We look to you to help us build a campaign to get all younger people committed to Social Security’s robust survival. Quite honestly, we want to turn you into an informed advocate for a strong Social Security program, one that will be there for each succeeding generation. Remember, it is the only source of income that you cannot outlive.
- Are you in your 20’s or 30’s?
- Do you have an opinion on Social Security?
- Do you have questions about Social Security or an interest to learn more?
On Wednesday, July 28th from 6-8pm, HMPRG will host a focus group to garner your thoughts about Social Security. Please contact me at KPavle@hmprg.org for details and to RSVP.
This post was edited by Bridget Murtha.
Photo courtesy of cayusa on flickr.com.
This post was written by:
Kristen Pavle - who has written 7 posts on Chicago Bridge.
Kristen is a licensed social worker currently living and working in Chicago, Illinois. She works as a policy analyst for Health & Medicine Policy Research Group, Center for Long-Term Care Reform. Her work focuses on assuring Illinois achieves an affordable, accessible, comprehensive and adequate long-term care system that is responsive to older adults, and reflects predominantly home and community based care.
Kristen is absolutely right. Even though the income it provides is not sufficient to live on, many older Americans rely on Social Security as their sole source of income. What would happen to this population if Social Security disappeared? It is important to note that only modest changes to the program would be necessary to ensure its existence for many years. It is these changes that we as young people must support; I for one do not want to contribute to a program from which I will never receive any benefits. If we give up on Social Security, we might miss out on $15,000 a year or more after we retire. If we’re lucky, we can look at that as a couple of extra tropical vacations every year until the end of our lives. And if we’re not so lucky, we might need to use every penny to keep food on our tables. Either way, I want this program, at the very least, to outlive me.
Thank you for the comment, Jordan. Interesting point about how Social Security benefits in retirement may be extra money for vacation for some, but for others it’s the difference between economic security and poverty.
I think sometimes it’s hard to younger generations to think about their own retirement and don’t realize what Social Security will mean to them in the future. I am one of those “younger people” and sometimes it’s hard for me. But I know through the work I do just how important Social Security is for the economic security of Americans. And hope to share this knowledge with others…..
-Kristen
Just out today, a great article that supports your position Kristen. The myth of the Social Security system’s financial shortfall http://www.latimes.com/business/la-fi-hiltzik-20100808,0,1359956.column
“That brings us back to this supposed $41-billion “shortfall,” which exists only if you decide not to count interest due of about $118 billion.”
Joe ferguson
Great article find, Joe! Thank you for sharing. It has been very interesting to hear people talk about the “crisis” of the Social Security Program. When in reality there is no crisis, in any sense of the word! Sometimes half the battle is education, and this article helps do just that. If we want our country to strengthen and preserve the Social Security Program, we must continue advocacy and education efforts. Health & Medicine (www.hmprg.org), plans on doing just that.
-Kristen