Will Social Safety nonetheless exist when I retire?

Ah, the query everybody loves to debate. It is accurate that Social Safety will quickly begin paying out much more advantages than it receives in contributions, because the bulk from the baby-boom generation phases into retirement.

The government's official position is the fact that there's sufficient cash saved to spend advantages in the presently scheduled amounts till 2041. The Social Safety Administration admits on its Website that advantages will most likely be decreased following that, barring modifications that enhance the monetary strength from the method.

Some critics say that advantages might be at danger as early as 2016 or 2017, when Social Safety money flow turns unfavorable. They claim that because the cash paid in more than the final couple of decades is component from the government's general spending budget, it's accessible only on paper; other branches from the government have spent it and left IOUs. To be able to spend advantages via 2041, the government would need to borrow.