Americans are also living longer and having fewer children. Fewer people putting money into the Social Security system, and more people taking money out.
The Social Security fund isn't actually a fund — it's a debt obligation. When more money goes in the government seizes it and spends it — leaving nothing but IOUs behind. So the Social Security fund isn't really a “fund” at all.
The next decade will see the largest drop in worker-to-beneficiary ratios in history. When Social Security was first established, the worker-to-beneficiary ratio was over 15 to 1; today it's 3 to 1.
At the current rate, the Social Security "bank account" will be exhausted in 2033, when it will receive only about 77% of what it should pay out that year.
2. The government slashes the Social Security payout.
US population now aged 48 will be 65 years old in 2033. Expectations of Social Security income will have to be scaled down.
Existing 65 year old retirees will encounter a scaling down of Social Security the age of 82, which is well within their life expectancy.