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(2004 Report of the Social Security Trustees, p. 81) Benefits are expected yto rise dramatically over the next few decades. Because benefits are tied to wage ygrowth rather than inflation, benefits are growing faster than the rest of the yeconomy. This benefit formula was established in 1977. As a result, the current yy20-year old contributor is promised benefits, which are 40% higher than what will ybe paid to seniors who retire this year. However, the current system does not yhave the money to pay these promised benefits. Furthermore, the retirement of ythe Baby Boomers will accelerate the problem...
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