The $40 trillion national debt is growing while Social Security goes broke—because wealthy Boomers are collecting over $100k in benefits per year
Fortune – Tech
fortune.com
Summary
The United States is entering the most expensive phase of retirement. Some of America’s oldest are eligible for more than $100,000 a year in combined Social Security benefits, while remaining as one of the wealthiest generations in the country. The national debt is rising—just passing $40 trillion this month—and Social Security is set to enter insolvency by 2032, meaning it may already be too late for the generations left behind. The Congressional Budget Office projected in 2023 federal spending on Social Security and medicare will account for 81% of the increase in mandatory spending between 2023 and 2033. In 2026 alone, increases in Social Security and Medicare spending account for nearly half the projected $362 billion increase in mandatory outlays. Interest on the debt is adding even another layer on the stack of debt pancakes. CBO projects net federal interest costs will exceed $1 trillion in 2026 and rise to $2.1 trillion by 2036. But the demographic math changed—baby boomers are now moving through retirement while younger generations deal with record job market difficulty. A median-wage worker retiring in 2027 is expected to receive roughly $730,000 in lifetime Social Security benefits compared with less than $200,000 in combined contributions from the worker and employer. Baby boomers collectively hold roughly $93 trillion in wealth, according to Visa Business and Economic Insights, but only about $36 trillion is expected to pass to millennials and Gen X over the next two decades.
From the source
The United States is entering the most expensive phase of retirement. Some of America’s oldest are eligible for more than $100,000 a year in combined Social Security benefits, while remaining as one of the wealthiest generations in the country. The national debt is rising—just passing $40 trillion this month—and Social Security is set to enter insolvency by 2032, meaning it may already be too late for the generations left behind. The Congressional Budget Office projected in 2023 federal spending on Social Security and medicare will account for 81% of the increase in mandatory spending between 2023 and 2033. In 2026 alone, increases in Social Security and Medicare spending account for nearly half the projected $362 billion increase in mandatory outlays. Interest on the debt is adding even another layer on the stack of debt pancakes. CBO projects net federal interest costs will exceed $1 trillion in 2026 and rise to $2.1 trillion by 2036. That means the government is spending money to si
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