Changing in US Demographics
The shifting in demographics is a major force behind the financial challenges facing Social Security. Back to 1960, the workforce was a lot larger compared to the numbers of retirees, with 5.2 workers supporting each Social Security beneficiary. With such a sustainable system, the taxes were comfortably paid by the working population, and it was easy to provide for retirees. However, with the population aging and birth rates declining, this ratio dramatically dropped. 2023 came with only 2.8 workers for every person who receives Social Security, and it’s projected to fall further to 2.2 workers per beneficiary by 2034.
This demographic shift comes with a significant challenge, and fewer workers are paying into the system. More people are living longer, and they draw benefits for extended periods. The longer life expectancy means that the financial burden covers more and more age sectors in retirees, and it’s harder to maintain the Social Security system without the right decisions, even if some may seem tough and often unpopular.
This difficulty in implementing major reforms is mostly influenced by political hesitancy. The last time Social Security faced a crisis was in 1983, and Congress has avoided substantial changes to the system since then, mainly because of the political risk involved. As time goes on, it starts to be more difficult to reform the system without profoundly affecting millions of Americans.
Eventually, there is going to be no choice for the Congress but to act. They are likely to do so in a way to avoid upsetting the older voters, and that is a powerful demographic sector. Cutting benefits for those near or already in retirement is unlikely, and instead, any changes might target the younger generations or higher-income individuals.
Possible scenarios:
They might increase payroll taxes on wages above the current income of $168,600. Any income above this line is not subject to Social Security payroll taxes. Eliminating or raising this cap could bring some revenue to shore up the trust fund.
Gradual reductions in future benefits—for the younger generations and higher-earning workers. This means that for those nearing or in retirement, the benefits will stay intact, but the future payouts for younger workers with higher incomes will be reduced.
These changes could manage the shortfall, but there is still careful navigation needed, considering political and public opinions where any adjustments to Social Security are viewed with intense scrutiny.
47 Responses
By only paying Americans, and watching benefits closely. Slow down hiring and requested funds from the agency.
Sometimes it seems politicians aren’t very smart. They are very good at raising taxes, and cutting money from programs.
If the wasteful government spending were cut, both social security and medicare would be solvent.
The problem I have is that we paid into social security, but illegal immigrants that are coming in are getting treated better.
We worked hard for many years , and when we retire we are entitled to file for social security. Illegal immigrants have done nothing, but create a big burden on the government, and taxpayers.
Close the border , cut all funding , and benefits for illegal immigrants. There is plenty of money being wasted . Stop all the funding for policies like “The Green New Deal”, and many others’.
It is pretty easy to figure out how to put money back into social security , and medicare. It sure seems like it is easy to take money from it.
The American people are sick and tired of having to pay more taxes, and illegal immigrants being treated better than us.
You said it perfectly Eric!! I started working when I was 16 and I will turn 73 in November.
Prices are higher than ever. Only people who paid into SS & Medicare should be eligible.
I started working at 14 for Summer Youth until I was 18. Then I started going to school and worked full time since then. I’m 65 and retiring the end of this year. I’m relying on my pension and social security to make ends meet. Leave our social security alone
Agree, it belongs to all the people that put into it in their lifetime… it should not for ant reasons be used for anything else
What part of “ILLEGAL” immigrants means they should get any government help that LEGAL immigrants could be entitled to? If they want to enter let them come enter following the rules.
Also, if our politicians had to retire on Social Security like many of their constituents instead of the system that politicians voted to give to themselves they would be much more highly motivated to fix whatever problems come up in the Social Security and Medicare/Medicaid systems.
Good writing!!!
Well stated. Hopefully, Elon Musk can cut out the wasteful spending in government so that the funds we all worked for, and paid into, will be replaced.
Agree 100%
Sounds like you might be a republican or think like one!!A,ny one that works has to pay taxes,thereford they contribute towards social security!!!The more people that work illegals included helps prolong social security!!!!
Key Findings:
In 2019, there were more than 4.2 million immigrants from Mexico who lack documentation. Together, they make up more than 40.8 percent of the 10.3 million undocumented immigrants in the United States.
More than one half of all undocumented immigrants from Mexico live in just two states, California and Texas.
The vast majority (96.7%) of Mexican undocumented workers are working and contributing to the economy and are vital to critical American industries including agriculture (11.5% of the workforce), construction (6.7%), and the tourism and hospitality sector (3.4%).
Given their productivity and their numbers, Mexican undocumented immigrants are significant economic contributors to the American economy. In 2019 alone, they earned almost $92 billion in household income and contributed almost $9.8 billion in federal, state, and local taxes.
Mexican undocumented immigrants held more than $82.2 billion in spending power, money that often goes back into local economies as they spend on housing, consumer goods, and services.
Rounding out the top 5 countries of origin of undocumented immigrants are: El Salvador (621,000, or 6.0 percent of all undocumented immigrants), India (587,000, or 5.7 percent), Guatemala (5.4 percent, or 5.4 percent), and Honduras (416,000, or 4.0 percent).
Undocumented immigrants from these four countries hold billions of dollars in spending power: India ($15.5 billion), El Salvador ($11.5 billion), Guatemala ($9.1 billion), and Honduras ($6.4 billion).
They also make significant contributions to federal, state, and local tax revenue: India ($2.8 billion), El Salvador ($1.4 billion), Guatemala ($1.1 billion), and Honduras ($778 million).
Read the full post here: Examining the Economic Contributions of Undocumented Immigrants by Country of Origin.
Illegal immigrants pay taxes and pay into SS and Medicare but they can never get anything back on their taxes and they can’t ever get Medicare. Millionaires and Billionaires do not pay anything into either one of these but they get all the great big deductions on their taxes that everyday Americans can’t access.
Amen, well said.
True We paid into Social Security I don’t appreciate Elon musk trying to take ever thing awaySeniors. Give our money back with interest.
I totally agree with you. No one that hasn’t paid into Social Security should ever be able to collect from it. If they have a hardship the government should put them on welfare, not give away our hard-earned dollars. Social Security and Medicare are the biggest PONZI schemes ever. If we had taken 7.65% off the top of every paycheck during all our working years, we’d be wealthy at retirement, and we would be able to take as much as we wanted when we wanted instead of getting a monthly stipend, think 401(K).??? We would also have enough to purchase our own health insurance. The biggest rip-off that no one ever talks about is death of a spouse. When one spouse passes away the Social Security ends and the surviving spouse gets the higher amount of the two checks. That is GRAND THEFT!!!!!! If we had been able to invest that money ourselves, the surviving spouse would be able to keep the entire investment instead of forfeiting it to the government. At the very least, the surviving spouse should still receive both Social Security checks. It’s our money after all. The next theft the government uses is the Death Tax or Estate tax. If we’re fortunate enough to fall into that category, the government can take 40-50% of our entire estate as a tax. I was born and bred in Boston, and I think we should all get together and start another Boston Tea Party. The government are crooks and something should be done. If Social Security ever runs out, I hope the country revolts and starts over with no taxes or at the very most, a VAT, Value added tax at no more than 1% of what we purchase. That would give the government more than enough to operate given they stop all the wasteful spending. It’s not their money and they have no problem spending it any way they want. But that’s just one man’s opinion, not speaking for a friend. LOL
Your info is all wrong. Immigrants coming here do not get SS.. The reason why SS has money problems is because not enough people are paying into the system to support those that are getting older and are collecting benefits.. that’s all there is to it Not about mismanagement. It’s not about government programs. It’s about too many people collecting and not enough people are paying in. There are solutions that are possible but the Democrats, Republicans can’t agree upon one. For instance, The income level for paying into Social Security can be increased. And then. would allow more money into the program. But the Republicans don’t want to increase it. because it’ll affect more wealthy people.
You are 100% correct. It isn’t a solvency problem; it’s an inappropriate spending problem. Politicians need to learn how to manage a budget. They also need to be reminded that it’s OUR money, not theirs.
I agree. Social Security should be used for the American People. We have American people who have never worked and they get turned down for help because they didn’t contribute. On the other hand, we have immigrants here getting all the benefits while our American people are homeless.
I agree with Eric. I worked all my life, paying into Social security. Quit giving it away to illegals!! I deserve my benefits as well as others who have earned it!
Stop paying as to immigrants that never paid into the system.
Immigrant do not get SS. Where did you get this ridiculous info from
Here is how you keep Medicare and Social Security solvent, first remove all of those other programs that don’t pay into Social Security and Medicare. Next require all of our politicians to surrender their political war chests after each election. Politicians raise hundreds of millions of dollars instead of letting them keep the money, make them put the money into into Medicare and Social Security. If they decide to run for office again they can always raise more money.
Great idea
I agree with Eric Swan, there is no justification as to where WE the american people who through all there lives looked forward to retireing and relaxing once done so. Now because of there unjust ways of paying bills the government has to look for other ways because of the mishandlng of taxes paid in through the hard working people all of there lives and end up getting less because of illegal immigrants coming here and being treated more better than the ones that are funding there scheeming ways. Do not throw out benifits to illegals, shut down the boarder except for those who come here legally, and start to move these vagrants back to there own country who paid for alot of them to come here to ease there own financial burden. Its very simple, over and done with.
Obviously the general public is not being educated on how the system works, believing that benefits are being paid to unqualified people. My opinion is that all the elected officials who now control their own salaries and benefits should be under the same umbrella as those of us who receive social security. There would be a much larger base of contributors. I could be wrong, but I believe their own system pays them more that what we get. Not fair. They already have much greater income than most of us.
all immigrants that comes to America when they begin to work, they should have extra taxes taken out of their wages for lease five years to be put back into Social Security and the reason for this is because they haven’t put anything in, but yet they’re receiving
Everyone has made valid points that I agree with totally. However; I think we should also consider how politicians, even when they shut down the government spending, manage to still give themselves a raise. Why not show the people who put you in office that you really work for them. We need to pray!!
Get all the money back that they used for other project thru out the years Stop some welfare and use that money there so much waste that could be used.
yes, you hit it right on the nail. can you imagine walking into a country and getting benefits and money that you never paid into and then the person who worked their entire life to be told that they’re cutting our benefits.
Instead of cutting us retirees Congress should quit taking money out of Social Security as Senator Sheheen from Massachusetts said in her debate with Scott Brown and I quote “ I have borrowed money from Social Security “. I’m sure if she has done then, she is still doing it with not paying it back. So if she is doing it I’m sure the majority of Congress is doing it as well. Congress also eliminate Social Security Disability which allows all sorts of fraud. In Obama’s last year of his 8 years there were 86,000 individuals who filed for Social Security Disability and got away with that largest fraud in history of our country. Finally, no illegal alien should be awarded any benefits which they have not contributed to and so they haven’t earned it. Instead of punishing us retirees Congress should work on this small list and instead of cutting retirees benefits we should get an increase After all we retired from our jobs after spending decades of productive employment
I have worked all my life since I was 16. I put myself through nursing school x2 and now I’m retired at 66. Now they want to cut (SS)
It’s outrageous! This country should ensure that the people who have worked and paid their taxes receive their benefits! Illegal immigrants should not be allowed in if they are going to affect our Social Security! Give them a job not a handout!
See my comments above
Watch ‘Sicko’ on Tubi
Remember the ‘ LOCK BOX” ??? How did that work
Get the $$$ away from Politicians , Secretary of Treasury should administer through a program with financial experts; Commission of fiduciary’s
Government cannot be responsible with OUR Money, look at Medicare & Medicaid BROKE
and why does SSI stop being withdrawn at an income level? Make adjustments to modify this, to be fair to Business , Senior workers and lower income individuals.
I don’t look for immigrant spending as the biggest problem. Why? Because eventually they will pay into the system as they are integrated into the workforce–the employers are the REAL culprits because they will do anything (like not putting these people on the books or running a cash only business) to avoid payroll taxes. No, the answer lies in making the healthcare system more affordable by controlling drug costs which are crazy in America and in a stringent enforcement of proper billing practices of providers. Does anybody on Medicare even look at their EOBs? (explanation of benefits or in other words what Medicare pays out) No. If they go to a doctor associated with a hospital for example Medicare is charged a fee for the doctor visit and a whopping charge for hospital services. Why? Of course Medicare pairs these down but upcoding is rampant.
Seems to me this administration has money 💰 Billions to send to the Ukraine , our tax dollars, that should be used right here in the good ole USA.
They need to pay back the billions that were taken from the SS fund from way back in the 60’s that LBJ, pilfered from it to fund the Vietnam War oh excuse me ” Police Action 😡
Why dont the ultra rich pay taxes? Why is the middle class bearing the brunt of all this?
If the rich paid taxes, I think social security would be fine. Who made this benefit for the rich?
Im going to guess, its the rich on capitol hill who voted for this… talk about un fair…
You are sooo rt sir. You hit the nail on the head. wellfar get new apartment. And us s.s get more taking out of ower checks.
On Point. I am sure it has been completed by someone, but not explained effectively to AMERICAN CITIZENS but if an anlysis emphasing the burden illegal immigrants have placed on AMERICAN CITIZENS was officially presented by an unbiased group, people would see how much is being lost.
Wasteful spending has been going on for many decades, the huge shortfall is our governments spending habit which would put Social Security and Medicare with a surplus. What happens to our citizens that paid in all their lives and lost their life in an auto accident or an illness and never collected a dime, where is that surplus of funding ?
So much misinformation the issue is a stand alone urgent problem fix Social Security and Medicare this has been a known problem for decades We cant blame immigrants, windmills, global warming, DEI,
Well, let’s see. Maybe the federal government could start by paying back all of the money that they have stolen from Social Security over the decades. Second, place all of congress under the same system all Americans are on. Third, stop paying out to illegal immigrants, (Don’t say they aren’t getting any of it, because they are. They come in, work a year or 2 and get the same Medicare benefits as an American citizen that has paid in all their lives.) Then and only then should they even think about any kind of trimming benefits.
I agree , plus they need to pay back all the times they took from the SS fund. Plus the rich need to pay their fair share.
I believe no l’m sure that if politicians were forced to live off of social security when they leave office instead of receiving their full pay for the rest of their lives we would have more than enough to sustain Medicare and Medicaid. There are a lot of non citizens that pay into the system and do not benefit from it just my opinion.
From what I am reading here it is evident that most of you don’t know how the system works.
To be eligible to collect Social security one needs to be at least 62 years old and earn a work credit of 10 years. People that are working illegally cannot receive SS because they don’t have registered work history.
To not just Bob. Illegals can’t get Social Security …you need a social security number. And, you can’t just walk out and ask for one like we did when we were kids.
The illegal immigrants that work real w-2 jobs have social security and the other items taken out, but they can not receive social security or medicare even thou they paid into it.