Social Security Struggles with an Aging Population and Declining Birth Rates
Factors Contributing to the Depletion of Social Security Funds
According to BMSS, Social Security has been important for many people since 1937. It helps with retirement disability and other big life changes. But now there’s a problem. A report in 2023 said that by 2034 there might not be enough money left in the Social Security funds. This could mean that people won’t get all the benefits they were supposed to get. The problem is because of a few things. First there are more old people than before. Second there are fewer young people to help pay for the old people. And third people are living longer so they need more money for a longer time. This is making the Social Security system struggle.
Importance of Personal Retirement Planning Amid Potential Changes to Social Security
To fix this lawmakers might have to change things. They might have to give out less money or make people pay more taxes. So it’s important for everyone to plan for their own retirement. This could mean saving money in a 401(k) or 403(b) plan or an IRA. By doing this people can make sure they have enough money even if Social Security changes.