A federal study panel issued a health report this week on the Social Security system, confirming what other experts have said for years: Social Security will remain in good financial health for the next decade or two but then face serious problems.
In short, there will be too many baby boomers in retirement by about 2029 and not enough younger workers to pay the pensions the baby boomers now expect.
Members of the panel offered three plans for Social Security to increase its revenues, and all three called for investing some of the system's funds in the stock market. But there were major differences of opinion about how those investments should be made -- alternatives likely to be debated by Congress and the White House for years to come.
For the immediate future the system will remain unchanged and the keystone of the government safety net, as explained by Sun staff writer John B. O'Donnell.
What is Social Security?
It is a government-operated pension system, created in 1935 in the midst of the Great Depression by President Franklin D. Roosevelt as part of the New Deal. His innovation was to promise elderly Americans financial support through a government program.
Who is eligible for a Social Security retirement check?
In general, anyone who has worked and contributed a minimal amount to the Social Security system through payroll tax deductions for at least 10 years is eligible for a Social Security pension. You become eligible for a full pension at age 65 -- but that threshold is going to be gradually raised to 67 between 2003 and 2027. You can collect a reduced pension beginning at age 62.
How much do I have to pay into the system?
Every employed worker pays 6.2 percent of the first $65,400 in annual wages into the Social Security trust fund. The employer pays an identical amount.
How many people pay Social Security taxes?
About 141 million Americans pay about $360 billion annually. More than 43 million people receive checks each month. Of those, 26 million are retired workers. Others who receive benefits are dependents and spouses of retired workers, disabled workers and their dependents and spouses, and widows and minor children of insured workers who died before retirement. For the disabled and survivors, eligibility requirements are different.
What is SSI?
