Given how polarized politics is today, and how dysfunctional Washington is in solving problems and getting anything done, one has to wonder if the nation’s issues are never going to be addressed. If you’re worried about retirement, you might even wonder if the Social Security bubble is about to burst. It’s a question heard way too many times by a social security lawyer Nashville.
It’s a cold mathematical truth that the program is putting out more money than it is taking in and eventually is projected to run out of funding. The exact date that is going to happen varies and even moves back and forth based on economic projections and taxes collected. However, it will become a certifiable financial crisis within a generation.
Changes will have to be made to the program, and the uncertainty is certainly causing concern among retirees or those in middle age or looking at their retirement. Fortunately, there is cause for optimism.
Even with the political dysfunction of the capital, there are still certain political truths that hold eternal in American democracy. One of them is that once an entitlement program is rolled out, it’s unlikely to ever die. The current GOP struggles to eliminate the Affordable Care Act, also known informally as Obamacare, prove this point.
Changes to Social Security are inevitable. They could include a reduction of benefits to those who do not really need them and a raising of the retirement ages before benefits are paid out.
There is one fix to Social Security that most politicians quietly acknowledge would fix the system for another generation, but they just haven’t mustered the political will to put into place yet. There’s an income cap on Social Security taxes wherein someone making a million a year pays just as much into the system as someone making two hundred grand. Reversing this regressive tax would fund the system for some time to come, and combined with the political clout of retirees, it’s virtually impossible Social Security is allowed to totally crash and burn.