7 Downsides of Social Security People Aren’t Talking About

downsides
Image By Olivier_Le_Moal From Envato Elements

#2 Time related downside: It is not fully funded

Unfortunately, the Social Security program is funded by taxes and by the people who are working. While this sounds like a good way to fund the program, the estimates are not looking good. By 2028, statistics show that the number of people who will be claiming and relying on Social Security benefits will be greater than the number of people paying into the program. There are even estimates that this will happen even earlier than 2028.

While a good part of the national debt of U.S. citizens is towards the Social Security program as they use Treasury securities, to be able to redeem those securities there is a need for funds to exist. This may mean that in the long run, we will be seeing higher tax rates, an increased federal deficit, and other financial consequences that as citizens we will all be feeling.

It may not seem like a big downside, but it may happen that despite paying towards the program all your working years, you will not even up beneficiating from it due to lack of funds.

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