Social Security was initially designed to care for retired Americans by providing an annual income they could live on. For today's workers, the future of Social Security is an uncertainty, and today's economics play a big role in whether or not it will be around for you and I once we are ready to retire.
According to the Social Security Administration, the current numbers of retirees - the Baby Boomer Bubble - is already taxing the system. Despite the fact that these 60-somethings have paid in billions over their working careers, there is no "pot of gold" waiting for them at the end of their rainbow.
In fact, according to Jeff Nabers, president of the IRA Association of America, "All Social Security really has is a big jar full of I.O.U.s. There is no treasury full of Social Security deposits," he says.
In a recent meeting in Denver, senior Social Security Administration commissioners met with the board of directors of the IRA Association of America to discuss the growing importance of educating Americans about saving for their own retirements.
"By 2017, Social Security will be paying out more than it is taking in. This is a concern," Nabers said.
A new Retirement Estimator located on the Social Security Administration's website, provides working Americans with the opportunity to estimate their future Social Security payments to see what they might qualify for when they retire at different ages. For many, the future is not pretty.
"The average check is about $1000 now. With inflation continuing to skyrocket upwards of 12% in recent years, and the administration only calculating increases to Social Security at around 3%, Americans are going to be seeing less and less from the government when they retire," Nabers says.
This problem, although not new, is coming to a head, as the first Baby Boomers hit 62 this year. The largest population of senior citizens is about to tax the agency, at a time when it is cutting staff and budgets and finding it harder to service recipients.