Living in the COVID World ... and Beyond #83: A Perspective on Social Security

I turned 70 this past March and received my first Social Security check in April.  

I began paying into Social Security as soon as I started working real jobs (my vacation and summer labor in my dad’s supermarket was uncompensated).  For many years, I made significant contributions into Social Security so the potential monthly payment for Social Security increased.   The way that the Social Security system works in the United States, if you can wait until you are 70 to start to collect Social Security your monthly payment will be at its maximum amount.  Many people cannot wait and start to collect their Social Security earlier (like at age 65).   Since I was (and am) still working as an independent consultant, I held off until I was 70.  

Once I realized that I would start to collect Social Security this year, I re-evaluated my work goals.  I decided to be less aggressive in pursuing paid work so that I could focus more on my activism and on family health issues.

Seeing the Social Security payments showing up each month in my bank account feels strange, it feels like I’m getting paid even though I’m not doing anything to earn it.   I know though that I earned my Social Security payments by working for almost 50 years.

I remember reading stories decades ago about concerns about the Social Security system’s financial sustainability.  The basic dilemma is that the changing ratio of people working and paying into Social Security relative to the number of people who are collecting Social Security benefits. 

Last month, a report was released by the Social Security Trustees that projected a significant shortfall.  As of 2034, the projection is that Social Security will not be able to pay the full committed benefits and instead would need to reduce benefit payments by 22%.   This would be a significant decrease for me … but I have other savings.  Many people live solely on their Social Security benefits so that reduction would be quite devastating.

I had to do some research to find the actual dollar shortfall that is being forecast.   It turns out that the Social Security budget shortfall in 2034 is projected to be $314billion.   That sure sounds like a big shortfall.

However, let’s provide some perspective.   There have been many articles lately about how much money Trump/Hegseth are requesting for increased U.S. military spending.  The budget request for the defense/war department is $1.5trillion, an increase in $420billion if approved.   To put it simply, the proposed increase in the military budget would more than pay for the Social Security shortfall.

Budget choices are a matter of prioritization.  There is enough money in the U.S. budget to “fix” social security.   Every senior citizen on a fixed income should be voting for candidates who reflect their desired priorities.   I can clearly state that my priority is at most flat and ultimately reduced military spending and instead investing in human needs, like social security.