Jed Graham at Investors Business Daily has an interesting take on Social Security’s insolvency, which the CBO projects will take place in the early 2030s. When the trust fund runs dry, the plan won’t have sufficient funds to pay full benefits.
But Instead of thinking in terms of the percentage of annual benefits that would be paid – around 75% – Graham calculates the equivalent number of years of benefits a person would lose. A 62 year old today, for instance, will lose only around 1 year of total benefits. Again, it’s not that his benefits stop for a year, but the cumulative cuts he’ll receive add up to about 1 year’s worth of benefits. But the younger you are, the worse things get. Today’s 53 year olds will lose around 3.5 years of benefits.