Since its establishment in 1935, Social Security has affected nearly every American. But now that the financial stability of the program has become an issue, uneasiness sets in as to how long it will last us. Regardless of how old you are, there are several things you need to know about Social Security:
What you pay in taxes. Currently, we pay 4.2% in taxes up to a maximum of $110,000 in wages. When January 1st rolls around, this will increase to 6.2%.
What your employer pays. Your employer pays an additional 6.2%.
Typical social security taxes. The average earner paid $2,522 into Social Security in 2012.
The ratio of workers to retirees. Today the ratio is 2.9 workers for every retiree.
Life spans have increased. Men and women are living longer, meaning they are collecting more Social Security benefits than ever before.
The trend is negative. Social security is currently paying out more than it is taking in.
Inflation could make things worse. Higher inflation rates could cause Social Security to run out of money a lot sooner than expected.
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Source: US News