Social Security's next 80 years - cnbc

Social Security may be America's favorite octogenarian.

Two out of 3 Americans view Social Security, which turned 80 years old Friday, as one of the most important government programs, according to a new AARP survey. That view has remained consistent in AARP polling since 1995. And 82 percent of Americans said it is important to contribute to Social Security for the common good.

Most retirees depend on Social Security for part of their income. Overall, Social Security retirement benefits represent about 38 percent of the income for seniors, but more than half of married couples claiming benefits and nearly 3 out of 4 unmarried retirees depend on the program for 50 percent or more of their income, according to the Social Security Administration.

The agency sent checks to more than 39.6 million retired workers in June with an average monthly benefit of $1,335. Last year, more than 59 million Americans received $863 billion in Social Security benefits, which includes disability benefits.

But Americans have doubts that Social Security will be there for them when they retire. Only 43 percent express confidence in the future of Social Security, according to AARP

They have good reason to worry. The trust fund for Social Security retirement benefits is expected to be depleted by 2034. After that, the program is projected to pay out about 75 percent of benefits. (AARP found that 73 percent of people do not know that Social Security will be able to pay benefits at a reduced level when the program's trust fund is depleted.)

Baby boomers, an estimated 10,000 of whom retire every day, are the cause of Social Security's rapidly shrinking trust fund. By 2033, the number of Americans eligible for retirement benefits will increase to more than 77 million from 46.6 million today. Meanwhile the ratio of workers paying into Social Security to the program's beneficiaries is projected to fall from 2.8 now to 2.1 in 2033.

"We have a retirement income crisis that is not here today, but Generation X and millennials will face it," said Ben Veghte, vice president of policy at the nonpartisan National Academy of Social Insurance. - Read More at Social Security

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