The 89th anniversary of Social Security is marked as the retirement fund faces insolvency under the Democrats.

The November presidential election is approaching, and there are concerns about the solvency of Social Security, which has been in existence for 89 years.

In 1935, President Franklin D. Roosevelt signed the Social Security Act into law, which created a federal benefits program for elderly Americans.

By 2033, Social Security's retirement benefits trust fund is projected to be depleted, putting lawmakers under pressure to find solutions to save the program.

In June, a Gallup poll showed that 80% of Americans were either "worried" or "extremely worried" about not having enough Social Security benefits when they needed them.

A financial planner spoke to Planet Chronicle Digital about the significant risks to Social Security if Congress does not take action in the near future.

1. Reserve funds

Those who contribute to Social Security through federal withholdings from their paychecks, those who are preparing to retire, and those who currently receive benefits are the three main groups of Americans affected by it.

Justin Rush, a financial planner in Novi, Michigan, stated to Planet Chronicle Digital that he believes Social Security is "more secure than people give it credit for." He explained that Social Security will not disappear once the reserve funds are depleted.

Rush stated that, after that time, assuming nothing is done in the meantime, retirees would only receive around 83% of their benefits.

Rush stated that he believes modifications will be necessary to maintain it.

2. Retirement age

The retirement age to collect full benefits in 1935 was 65 years old.

But a law passed in 1983 gradually increased the retirement age to 67.

As previously reported by Planet Chronicle Digital, Republican Study Committee Chair Kevin Hern, R-Okla., has suggested increasing the retirement age to 69.

Rush stated that raising the age is a smooth way to balance the equation, according to him.

Collecting Social Security benefits before the age of 66 reduces the monthly payout amount.

3. Payroll tax

In 2024, the earnings that are subject to the Social Security payroll tax will be $168,600.

According to the Social Security Administration, workers who earn wages of $10,453.20 or more stop contributing to the program once they have contributed 6.2% of their salary, with their employer also contributing the same amount.

The Democrats have suggested increasing taxes on high earners over $400,000 to fund the program.

Rush stated that opponents of removing the cap believe it will result in unequal retirement benefits.

""Their argument is that removing the cap on this now will weaken the link between the amount paid into it and the amount received upon retirement," said Rush."

So, a lot of people who are against increasing the cap are doing so because they're against it.

4. Population growth

According to U.S. Census Bureau data from 1935, the United States population was approximately 123.2 million people.

According to the latest data from 2020, the current population is over 331.4 million individuals.

Rush stated that the significant aging of our population poses a significant risk to the overall setup.

"As time progresses, the number of older individuals receiving Social Security will increase while the number of younger individuals contributing to the system will decrease."

Rush said that's contributed to the depletion of reserves.

Unless Congress intervenes, the trend will likely persist, he stated.

5. Life expectancy

When Social Security started, the average life expectancy in the U.S. was in the early 60s, according to Hern of Oklahoma.

Today, the average life expectancy is in the late 70s.

Hern stated in April, "So, you're living more years on a program that was never intended to be that way."

"Not only will there be an increase in the number of people claiming Social Security, but they will be claiming it for a longer duration," Rush stated.

"It is in both parties' best interests to figure out some solution."

Rush stated that some young Americans believe there will be no money left in the Social Security fund when they retire.

"We are seeing more younger clients and families who want to ensure a secure retirement without relying on anything," he said.

"They want to exclude Social Security from that image."

Rush said he considers the future of Social Security a bipartisan issue.

"It would be advantageous for both parties to determine a resolution."

Elizabeth Elkind of Planet Chronicle Digital contributed reporting.