Sen. Bill Cassidy (R-Louisiana) discusses the Republican Party’s Social Security savings plan and reacts to Bernie Sanders’ 32-hour work week initiative on Bernie & Company.
BlackRock CEO Larry Fink He sent his annual letter to investors on Tuesday, noting that the aging U.S. population is putting a “tremendous burden” on Social Security and that retirement plans are in decline due to impending bankruptcy. He cited the need to reform.
Fink explained the economics behind it. social securityThe idea is to collect taxes from working people in order to receive post-retirement benefits. Originating in pre-World War I Germany, these “old age insurance” programs gradually became popular throughout the 20th century, largely because demographic trends made sense. . ”
“Think of someone who was 65 years old in 1952, the year I was born. If he hadn’t retired yet, that person probably would have been preparing to quit his job. But now that person’s former colleague and all the people around him.Data show that in 1952, most of those people do not have prepare for retirement because they are already dead,” Fink wrote.
Social Security Trust Fund heads down the path to bankruptcy
BlackRock CEO Larry Fink said Social Security’s retirement age looks “a little crazy” as the system faces bankruptcy and benefit cuts in 10 years. Ta. (Victor J. Blue/Bloomberg via Getty Images/Getty Images)
According to data from the Social Security Administration (SSA), in 1955, the ratio of eligible workers paying taxes to the number of beneficiaries was 8.6. Due to the aging of the US population, that number decreased to 2.8 in 2013.
Fink noted that Americans’ longevity in retirement is also putting pressure on Social Security’s financial health. If so, there’s a 50/50 chance.” At least one of you will likely receive a Social Security check until age 90. ”
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BLK | BlackRock Co., Ltd. | 820.21 | +3.86 | +0.47% |
“All of this places an untold strain on America’s retirement system,” Fink added. “The Social Security Administration itself says it won’t be able to pay people full benefits by 2034. What’s the solution? No one should have to work longer than they would like. But I… I think that’s a bit strange.” Our basic ideas about a suitable retirement age of 65 come from the days of the Ottoman Empire. ”
Social Security cuts could be coming soon – here’s what will be affected
Social Security’s two major trust funds are projected to be depleted in 10 years. (Kevin Dietsch/Getty Images/Getty Images)
Social Security’s two main trust funds, which rely on increased payroll taxes to fund benefits to beneficiaries, are projected to be depleted 10 years from now. Once the trust fund is depleted, incoming payroll taxes become the only source of benefits, and under current law, automatic reductions would begin equal to the incoming benefits paid to recipients.
An analysis last year by the bipartisan Committee for a Responsible Federal Budget found that the average working couple retiring in 2033 would see their benefits cut by 23%, or $17,400 in annual benefits in today’s dollars. , it was found that couples living in single-person households would have their benefits reduced. At $13,100.
Social Security and Medicare are struggling, and no leader of any party is willing to step up.
BlackRock CEO Larry Fink said the asset manager will announce partnerships and initiatives to advance the conversation about Social Security and retirement in the United States. (Kirk Side/Houston Chronicle via Getty Images/Getty Images)
Fink’s letter points out that the Netherlands moved more than a decade ago to address fiscal challenges affecting the national pension by gradually increasing the retirement age and automatically linking it to changes in life expectancy. did.
He suggested that the United States should talk about what the average retirement age should be and how to encourage more people to work longer rather than retire to increase labor force participation.
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