I’m an Economist: Why Social Security Is in Crisis — and What You Can Do

Core Insights - The Social Security trust fund is projected to deplete by 2033, leading to potential benefit cuts exceeding 20% for retirees [1][4] - The increasing number of retirees relative to active workers is a primary driver of the Social Security crisis [3][4] - Without reform, the likelihood of reduced benefits is higher than increased taxes, impacting future retirees significantly [5][6] Group 1: Current Situation - The baby boomer generation is entering retirement, causing the percentage of individuals over 65 to rise from 12.4% to 18% over the past two decades [3] - The trust fund will transition to a pay-as-you-go system by 2033, relying solely on current payroll taxes, which will result in benefits being less than 80% of current levels [4] Group 2: Future Implications - Current retirees are expected to receive their anticipated benefits, but middle-aged and younger workers may need alternative income sources for retirement [6] - Potential reforms may include later retirement ages, smaller cost-of-living adjustments, and means-testing for high-income retirees [5]