Some of my conservative friends - and some progressive Democrats as well - have been telling me for years that Social Security as we now know it is doomed. It must be changed to save it. Two dates are often cited as crisis points for the program. One occurs in or near the year 2018. The other in or near the year 2042. I believe that these two dates are based on projections by the Social Security administration.
In the year 2018, the services to retirees will just be equal to the revenue from the payroll tax. From then on, the difference in revenue will be made up by selling off some of the government bonds that the Social Security Administration bought when the payroll tax exceeded the money required for services. In the year 2042, or thereabouts, the last of the bonds will be sold.
Read More