Thursday, March 09, 2006

Will Social Security "Run Out"?

The steady stream of articles about the baby-boom generation's impending retirement often state as fact that funds in the Social Security system will run out as boomers collect their due. 

Not true. America's workers will still pay into the system. Yes, the Social Security surplus will disappear, but the cash flow will continue. Even without any further changes to the system, Social Security will be able to pay 71 to 81 percent of promised benefits indefinitely.

It's also important to remember that the "pig in the python" won't be stuck there forever. Eventually, boomers will exit the system, and Social Security will swing back into a better demographic balance. 

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