Social Security is unsustainable without reform

Right now the Social Security Administration concedes the program pays out more than it takes in and that's only going to get worse without some sort of reform. Just last year the program added 5.6-million new beneficiaries.

Yahoo Finance's Rick Newman outlines the problem.

"If nothing changes what's going to happen around 2033 is that the Social Security trust fund, which is sort of like the surplus that exists because of the taxes we all pay, is going to run dry."

Some of the Democratic Party Presidential hopefuls want to hike taxes on the rich but Newman says there might be a better way.

"There's an argument to make that it is more efficient to simply limit benefits or even eliminate benefits for wealthy people."

Newman says Democratic Presidential hopeful Elizabeth Warren wants to hike payroll taxes on those who make more than $250-grand.

"You'd pay the 6.2% up to $133,000 of income, then you'd pay nothing from 133 to 250, but once you got to 250 you'd pay 7.4% from 250 to 300."

One major new trend is women receiving Social Security benefits for working. In 1970 just 63% did; now it's 86%.


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