That worked fine as long as there were plenty of workers and few retirees. In 1950, there were 7.2 workers for each retiree, but today the ratio is only 3.2 to 1, and by 2020, it's expected to be 2.4 to 1. Currently, there's a surplus of Social Security tax income over payouts, but by roughly 2015, payments will exceed taxes. By 2032, Social Security is expected to be broke. Understand the suggested solutions.
Solutions fall into three main proposals.
Partially privatize Social Security for younger workers investing a portion of the tax in the stock market, where it would be expected to earn more over the long run than if left in the Social Security system. Fully privatize Social Security by allowing younger workers to put their entire Social Security payments into private markets. Understand the objections. Everyone agrees changes must be made, but objections exist for all three suggested solutions. Some argue that adjusting the current system, especially raising taxes, is too much of a tax burden and a waste of money.