Slide 25 of 38
Notes:
Even though Social Security was never intended to be the sole source of income in retirement, it is for many of today’s seniors. We all know the concern about the future of Social Security and the debate of what to do about it. While the ratio of payers to beneficiaries was 16 to 1 in 1950, today it is 3 to 1 and projected to be 2 to 1 in 2030.
The major change in life expectancy is NOT a much higher number of people living longer after they start collecting. The biggest difference is that more people live long enough to begin collecting at all. Of course, this means that more people live long enough to pay in for their entire life time; but that’s not enough given the changing ratio of payers to beneficiaries.
