As the record federal budget deficit draws
increasing scrutiny from Washington to Wall Street to Main Street,
deficit hawks may take aim at entitlement programs including Social
Security.
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Photo: Jonathan D. Colman
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And,
the nearly 80 million Baby Boomers phasing into retirement will set in
motion a dynamic that—if not addressed by Congress—could result in the
next generation getting fewer benefits.
However,
despite fears that Boomers will trigger a collapse of Social Security,
experts say the system can and will survive for decades and generations
to come.
Congress
made significant fixes to Social Security during the 1970s, the 1980s
and the 1990s, and there appears to be a slowly gathering political
will to make it solvent for the next 75 years.
By
2017, Social Security is expected to start paying out more than it
collects in payroll taxes, according to the 2009 Annual Report from the
Social Security and Medicare Board of Trustees.
There is currently a large surplus, but it will be drained by the year
2037. At that point, Social Security will only be able to pay out 75
percent of its benefits.