Social Security: The Vanishing Act

The concept of social insurance was written into Article 22 of the Universal Declaration of Human Rights which states that Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

On April 25, 2012, The Social Security Board of Trustees released its annual report on the financial health of the Social Security Trust Funds.

The report has determined that the combined assets of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds will be exhausted in 2033, three years sooner than projected last year.

The DI Trust Fund will be exhausted even earlier, in 2016, two years earlier than last year’s estimate.

The Trustees also project that OASDI program costs will exceed non-interest income in 2012 and will remain higher throughout the remainder of the 75-year period.

“This year’s Trustees Report contains troubling, but not unexpected, projections about Social Security’s finances. It once again emphasizes that Congress needs to act to ensure the long-term solvency of this important program, and needs to act within four years to avoid automatic cuts to people receiving disability benefits,” said Michael J. Astrue, Commissioner of Social Security.

How do you feel about the prospect that the Social Security insurance you have been paying into throughout your adult work life may not be available to you? Are you saving other income in the event social security is not available upon your retirement or in the event of a disability?

Or do you have confidence that the government will safeguard and recover Social Security insurance for all?

Take our poll, and let us know what you think in the comments.