To the editor:
Will Social Security last?
In 1935 the Social Security Act was signed into law under President Roosevelt. It was created to establish a system to provide adequate benefits primarily for retired senior citizens.
In 1942 some 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 and children’s benefits. The rest funds Medicare. Employers and employees contribute 7.65% each to FICA, while the self-employed contribute 15.3%.
Preserving Social Security needs serious discussion with timely action taken. Legislation needs to pass to keep it solvent for present and 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 might dictate means testing, drastic cuts in annuities, higher FICA taxes or a retirement age above 65.
Tom Mazza
Clive
Or we could raise the maximum income level on which Social Security is taxed. In order to do that, Republicans have to agree to it, and of course they promote ideas like eliminating income tax. Never mind schools, the national defense, roads and bridges, police, firefighters, etc.