Social Security for Baby Boomers
Some call it "The Silver Avalanche", I have also heard it described as the "Silver Tsunami". Either way, it will take a financial toll on our Social Security system.
On a cloudy day in 1945, a military vessel pulls into port and empties on to the shores. World War II has ended and The Great Depression is over. The country is stable and happy. Needless to say there were some very happy and healthy reunions. For the next couple decades, more babies were born than any generation that came before. Flash forward to today and those same babies are on the cusp of retirement.
Everyone needs some kind of safety net, yet some think that the baby boomers will unfairly take from the system that todays workers are paying into. The truth is, until 1990, Social Security was only, 6.5% tax. These days its a hefty 12.4%. This means all boomers worked half their life with a cheaper bill, where
Gen X-ers have been paying full price their whole working life.
Being the backbone of income for the elderly, in some cases, their only income, Social Security has a rough road ahead. According to the Social Security and Medicare Board of Trustees, the large surplus its been building will run out in the year 2037. At this point the program will possible only pay 75% of benefits.
Even though this is an issue that affect millions, 2037 is a long ways off and there's plenty of time to fix the system. A hike in the Social Security tax around 2030 would possibly offset the financial burden.
In conclusion, it is the opinion of this blogger, that this generation and beyond, the personal care of retirement accounts and personal savings, is an absolute must. Just 10-15 % of net income would financially assist with your elderly years to come.
Statistics and some information taken from, www.cnbc.com, (source)