Paying for dinner is a constant concern for University students.
Retirement doesn’t even cross our minds.
It’s hard to find enough money to pay for our Cane’s addictions with pocket change and low debit card balances. But affording lunch and dinner may still be a daily issue post-retirement if Congress does not reform Social Security.
In 2033, Social Security’s trust funds will deplete, leaving millions of Americans in financial crisis as benefits decrease substantially. According to the Center on Budget and Policy Priorities, the retirement program currently keeps 21 million Americans out of poverty.
If Congress fails to keep the funds from depleting by 2033, benefits will drop by 23 percent, which. Assuming maximum annual benefits, this equates to an annual loss of $7,291 and monthly loss of $607 for recipients.
Without retirement funds, middle class retirees will eventually dip into their savings accounts, and lower-income retirees may become dependent on Social Security benefits.
Louisiana citizens who live under the poverty line will be more dependent on Social Security benefits if current retirement savings trends continue by 2033. For the elderly under the poverty line, $607 may be the difference between making rent and living with their adult children.
Former Louisiana Sen. John Breaux said the program is not politically popular enough for Congress to reform before the 2033 depletion date, but it’s highly unlikely Republicans and Democrats will allow Social Security funds to run dry.
“It is a very difficult subject to offer solutions to without getting your head handed to you politically,” Breaux said. “There have been many people who are now former members of Congress who tried to talk about Social Security and got beat as a result of it.”
The program is running out of money as baby boomers retire, decreasing the worker-to-retiree ratio. According to the U.S. Social Security Administration, in 1955, there were 8.6 workers for every retiree. In 2030, there will be approximately two workers for every retiree — a ratio that cannot sustain full benefits.
Congress needs to fix the depleting funds now rather than later, as the Social Security and Medicare Boards of Trustees have warned for years. With today’s political climate, college students need to start placing money in retirement funds. There is no guarantee our elected leaders will come together and make a comprehensive reform before it’s too late.
If they do nothing and we do nothing, retirement will be daunting.
Belinda Davis, associate professor of political science and deputy director of the Public Policy Research Lab at the University, said Americans from ages 18 to 40 are most at risk if Social Security isn’t reformed. Only 50 percent of that demographic participates in 401(k) retirement programs, and without Social Security benefits, retirement may not be affordable.
“We are going to have an entire generation of Americans who are not equipped to be able to handle their daily needs when they are no longer working,” Davis said. “You will see a large number of the elderly on food stamps. They will lose their homes. They will have to do reverse mortgages. We will see more elderly having to live with their grown children. It’s not a good scenario at all.”
Social Security must become a genuine talking point in 2016, not a fear tactic. Too often our politicians scare senior citizens with lies about how the government will cut their benefits. Fear mongering stops discussions on reforming the program.
We need Congress to know they cannot play around with our future. Spark conversation on reform and our bickering politicians will be forced to stop lying to senior citizens and talk about securing our generation’s retirement.
Washington needs to decide on a reform sooner than later. Maybe if they start talking reform now, they will have agreed on something by 2033.
Let’s get politicians to start serious discussions on reform. If we don’t, retirement may not be filled with long, lazy days on golf courses. Retirement may resemble me prior to yesterday’s dinner — frantically searching for loose change and dollar bills.
Justin DiCharia is a 20-year-old mass communication junior from Slidell, Louisiana. You can reach him on Twitter @JDiCharia.