After paying taxes, taking care of bills and putting food on the table, we rarely have much left over. Given our wages and family roles, it is not surprising that the poverty rate among elderly women is two times higher than among elderly men. The outcome of the current debate on Social Security will determine for millions of us whether we retire poor or whether we retire with security. We must raise our voices in this debate. But first we should understand why Social Security faces problems today.
Nothing is saved or invested for tomorrow.
There is no Social Security piggy bank. Our retirement benefits depend on the taxes paid by our children and grandchildren. As late as 1950, there were 16 workers paying benefits for each retiree, but today there are only three. Soon there will be just two. In Washington, that usually means ratcheting up the FICA tax.