The Social Security system in the United States will turn 80 on August 14, 2015. Social Security is the sole source of income for one in four recipients. President Franklin D. Roosevelt signed the Social Security Act into law. But more than half of working Americans doubt that it will be there for them when they are ready to retire. Published reports indicate that the system will run out money to pay benefits in 2034. First Social Security benefit check was issued to Ida May Fuller on January 31, 1940.
What peril the system? Today 210 million working Americans pays into the system. Approximately 60 million retirees and disable persons receive more than $800 billion in annual benefits. The average benefit is around $1,332 a month. One solution is to raise Social Security tax to collect more funds. Some say income inequality as the source of its financial problems. Contributions are capped at certain income level and any earnings above that not subject to Social Security tax. This favors the high income earners. This is why some are suggesting changing rules on taxation for Social Security. The subject of how to fix Social Security will consume some part of debate during the upcoming Presidential Election.