Social Security is in Trouble

Economists and Texas A&M are predicting Social Security could run out by 2033.

Russell Gloor, Social Security Advisor for AMAC, says it's a valid guess. "Reserves that are currently in the Social Security Trust Fund are about $2.8 Trillion. Unless Congress acts pretty soon - that amount will be soon depleted." About 10,000 Baby Boomers retire every day. So, the growth of the number of workers contributing to Social Security is much slower than the growth of those collecting Social Security."

Gloor says it all boils down to this. "Increase life expectancy in the U.S. Social Security is a program that was designed to pay benefits for a few years instead of decades - which is what is now happening." The pace of Boomer retirements has accelerated in the past year and it's expected to continue. He also points out the number of workers contributing to the fund are growing more slowly than the group collecting it.

Gloor says we're living much longer than the economists who created the provision in 1935 would have ever imagined. It was only meant to give funds to retired people for a few years - not decades. And with birth rates falling, the numbers of those donating to the fund are gradually diminishing.

photo: Getty