Social Security cannot afford to pay all of the benefits it has promised.Beginning in 2017, it will run cash deficits that get bigger every year.
The daily debate over Social Security personal accounts sometimes can benefit from stepping back and looking at why the elderly entitlements will pose such a challenge in the near future. The number of Americans over age 65 will grow from about 35 million today to about 86 million by the time today’s younger workers retire. Furthermore, elderly over the age of 85 will grow from 11% of all older Americans to a quarter of all seniors in that same period. Personal accounts that younger workers can own and control are the only hope to finance this welcome lengthening of life.
Social Security has a problem, and we need to fix it. Personal accounts are the solution.
Elderly Population Will Grow, Get Even Older
Source: U.S. Census Bureau, 2005