As Josh Gotbaum pointed out in a recent Newsday op-ed, Americans are living longer and need to prepare for longer retirements.
Social Security also has to get ready.
As reported by US News, here are some data points relevant to Social Security’s finances:
- In 1940, a 65-year-old could expect to live an additional 12 or 13 years. A 65-year-old today can expect to live another 20 years, and thus collect benefits for longer periods.
- The drop in birthrates and the increase in life expectancies have reduced the number of workers per beneficiary to 2.8; by 2036, the ratio will be 2.1 workers for each beneficiary.
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