What is the reason for the Social Security imbalance in paying benefits?

What's Up (or Down) with this Social Security?

A single man who retired in 1980 at age 65 after earning an average wage of $43,500 would have paid about $96,000 in Social Security taxes, and probably received $203,000 in lifetime benefits.

By contrast, a single man making the same average wage today and retiring in 2030 will likely pay $398,000 in lifetime taxes but receive just $336,000 in lifetime benefits — about 16% less than he paid in. No doubt people who were first in the system got a great rate of return. It's the younger generation that is going to be in the most difficult position.

The imbalance is partly due to the fact that the earliest beneficiaries only paid taxes in the later stages of their careers.

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Jesse Alvarado

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