US Social Security funds to run out ahead of schedule

Significance

Demographic pressures from an ageing society weigh less heavily on the United States than many other economies but they are now placing stress on a Social Security system that provides income for nine out of ten retirees. Necessary reforms are being held back by the voting power of those over 65, leaving the system at risk.

Impacts

• US workers now expect to keep working until 66; in 1995, they expected to retire at 60.
• Two-thirds of US households say they have not accumulated sufficient assets to provide adequate income for retirement.
• One in twelve US households has no private retirement savings and will be entirely dependent on Social Security.
• Inequality in lifespan among demographic groups will increasingly offset Social Security's redistributive intent.