Will Social Security Last?

In 1935, the Social Security Act was signed into law under President Franklin Roosevelt. It was created to establish a system to provide adequate benefits primarily for retired senior citizens. In 1942, 42 workers paying into Social Security supported one retiree, today there are about three workers per beneficiary. With greater longevity and more eligible retirees, the system is less financially solvent.

By 2035, Social Security will not sustain future retirees due to paying out more than it receives through FICA taxes which fund Social Security retirement, disability, survivor, spousal & children’s benefits. The rest funds Medicare. Employers and employees contribute 7.65 percent each to FICA, while the self-employed contribute 15.3 percent.

Preserving Social Security needs serious discussion with timely action taken. Legislation needs to pass to keep it solvent for present & future retirees. If not, by 2035 all of Iowa’s retirees relying on Social Security will see benefits greatly decrease as poverty levels increase among our elderly and those most dependent.

Future legislation may dictate means testing, drastic cuts in annuities, higher FICA taxes, or retirement age above 65.

Tom Mazza

Clive, Iowa