Question

Which of the following is the primary reason for the current and impending shortfalls in Social Security funding?

Multiple Choice

• A. Baby boomers moving into retirement age in large numbers.

• B. Reductions in payroll taxes used to fund Social Security.

• C. High unemployment rates among Millennial workers.

• D. Massive increases in Social Security retirement benefits.

Answer 1

There are various reasons for shortfall in social security funding ,one of which is :

A falling worker-to-beneficiary ratio : A major problem facing social security is a demographic shift i.e. retirement of baby boombers.There will be more than 70 million baby boombers retiring between 2010 to 2030 this means there be huge surge in the number of  beneficiers. While on the other hand,New workers aren't enough to replace the retiring baby boobers.Therefore there will not be payroll enough tax revenue coming in to aid the growing numbers of beneficiers payments going out.

Hence answer is A. Baby boombers moving into retirement age in large numbers.