Will Millennials Still Receive Social Security?

Sydney A. Brobbey

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According to the Wall Street Journal, Social Security’s costs are projected to supersede its income in 2035 for the first time since 1982. As a result of this projection, economists are foreseeing that the program will have to plunge into its nearly $3 trillion trust fund to cover its benefits

Although Social Security benefits are due to decrease in 2035, this projection is far more appreciated than it was in 2018. According to the board of trustees for Social Security and Medicare, the benefits were expected to run out by the end of 2018.

The advanced prediction is partly as a result of the healthy labor market. Because workers’ paychecks have been boosted, higher tax revenue has enhanced the monetary outlook of the country. However, this advancement is not enough to keep funding for Social Security for an extended amount of time.

By 2035, the trust funds for both programs will be depleted, and Social Security will no longer be able to pay its full scheduled benefits unless Congress makes some changes. The income for the programs stems from tax revenue and interest from its trust fund.

As stated by the trustees, “ Both Social Security and Medicare face long-term financing shortfalls under currently scheduled benefits and financing.” Without instant changes, in 15 years, Social Security recipients will only get about three-quarters of their scheduled benefits.

The costs of both programs are predicted to increase exponentially as a part of the economy in the nearing future will be retired baby boomers. Furthermore, lower birth rates over the past decades keeps employment and economic outcome stagnant.

Moreover, the rising costs of the programs are expected to place a burden on the federal budget. As explained by the Wall Street Journal, “Both programs together account for 45% of federal spending… and have contributed to larger deficits that are set to exceed $1 trillion a year starting in 2020.” Furthermore, as estimated by Brian Riedl, a senior at Manhattan Institute, “over the next 10 years, Social Security and Medicare benefit shortfalls will account for 90% of larger budget deficits.

Cumulatively, the projections of the Social Security and Medicare programs forecast a blooming catastrophe for millennials and gen Zers. It is important to remember that in 15 years, our country may face a large problem economically if we do not make efforts to control our budgets.