As of this week new congressional projections show Social Security running deficits every year until its trust funds are eventually drained in about 2037.
If you are planning on having the social security administration sending you checks in your retirement years it may not occur as planned.
This President, Congress and financial gurus will be talking about, if not doing some things to keep the Social Security system alive. This will not be solved easily, if at all and you should now expect that higher and new taxes will become part of the answer.
This year for the first time the Congress and President gave every employee a tax break by reducing the FICA tax rate by 2%. That one time reduction will cost the Social Security system $85 Billion in revenue this year and raise the projected shortfall in 2011 from $45 Billion to a staggering $130 Billion. Does this represent the type of political direction aimed at solving the problem?
No matter what political party you support we need to work on real change to the government systems and financial programs we deem “a right”. What comes next may be a end to the new Health Care program just as we see the Social Security programs running dry.
Take action, vote for strong Congressional financial leadership. Preserve and increase the savings you have to assure that you are not dependent on the government for your retirement, health care or other assistance.