Invisible No More: Social Security Will Soon Slide Into Insolvency

Despite years of warnings from policy wonks and financial professionals, the looming crisis in Social Security has lacked urgency and barely enters the public debate, laments Boston Globe columnist Robert Weisman. One reason may be because once the nearly $3 trillion in the Social Security trust fund starts shrinking, no one will lose benefits right away. But if the funding isn't replenished by 2035, all recipients will face benefit cuts of more than 20 percent, under current projections by Social Security trustees. So, for example, if the average benefit this year is $1,461 a month, a 20 percent cut would reduce that payout by $292. A cut of that size would likely put a serious crimp in a retiree's standard of living: Social Security accounts for at least 90 percent of total retirement income for about a quarter of Americans over 65 and at least 50 percent of retirement income for roughly half, according to the Social Security Administration. The impact of a cutback on beneficiaries and the nation's economy would be huge, considering how heavily so many Americans rely on the program and how quickly other sources of retirement income have dried up. The problem will only intensify as millions more employees retire each year in the coming decade.