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While we may not all look forward to retirement, or maybe aren’t planning properly for it, for many of us it’s going to happen. However, now if you will be retiring before 2037, you may want to start looking into a very serious saving plan for yourself and your family.

Today there was a report that came out that announced that Social Security would run out of money by 2037, four years sooner than first thought.

In 2016, Social Security will start paying out more benefits than it takes in, which is what will lead to the depletion of the fund by 2037.

Medicare is actually faring worse than Social Security, is has been giving out more benefits than it was taking in since 2008 and will be depleted by 2017.

There is a serious problem with these programs now, the fact there are so many baby boomers going into retirement now is what is depleting the funds. While I don’t support a completely privatized Social Security/Retirement program, I don’t and can’t appreciate the fact that this money comes out of my paycheck every time I’m paid just so I won’t be able to benefit from it at all in the future. When social security runs out, I will be 51.

Right now I haven’t even finished college and this news has me worried. I have to think about my 401 (k) and other retirement plans just so I won’t have to eat out of a dumpster and live in a box during my “golden” years.

There should be some type of reform to the current social security system. I think that there is a problem that needs to be addressed.

My solution would only benefit those, like me, who are worried about 40-50 years down the road not being able to afford the cost of living. I would propose that the taxes withheld for social security and Medicare from each paycheck actually go to the person who is earning that money and is put into a government backed fund of some kind, instead of giving the money to those who have already retired. Of course the problem with that is that those who are retiring now will not be able to draw social security from what is being earned now, and that money will have to come from somewhere.

Some have said that removing the income tax cap would be a better option. Why is it fair for someone who makes $250,000 a year to pay the same amount of tax as someone who makes $5 million a year? While both of these people are obviously not anywhere near poverty, of course the person making $5 million a year can afford to pay more in taxes, even though that person is more likely to spend that money on hiding assets.

Jeremy

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