The more children people have, the better shape Social Security will be in. [View all]

[Nye Bevan]

Social Security contributions are not invested on behalf of beneficiaries. Instead, current receipts (i.e. Social Security taxes) are used to pay current benefits (which is why the system is described as "pay-as-you-go&quot . In the past the Social Security taxes paid in have exceeded the benefits paid out. The difference has been spent by the Government on other stuff.

One useful way to describe the effect of the change in the aged dependency ratio and the resulting effect on the ratio of beneficiaries to workers is to consider the implied number of workers per beneficiary. For the past 35 years, there have been about 3.3 workers per beneficiary (consistent with the ratio of 30 beneficiaries per 100 workers). After 2030, the ratio will be two workers per beneficiary (consistent with 50 beneficiaries per 100 workers).

With the average worker benefit currently at about $1,000 per month, 3.3 workers would need to contribute about $300 each per month to provide a $1,000 benefit. But after the population age distribution has shifted to have just two workers per beneficiary, each worker would need to contribute $500 to provide the same $1,000 benefit.

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There is no one clear solution to the problem of increased cost for retirees because of fewer workers available to support the retirees, which in turn is caused by lower birth rates. This issue is not specific to Social Security, but also affects Medicare as well as many other private and public retirement income systems. The decline in birth rates has been far more dramatic in Japan and many European countries that are struggling with the effects of aging populations because of declines in birth rates even more severe than in the United States.

http://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html

I know many here like to be judgmental of people like the Duggars, but those kids will be helping pay for our Social Security when we retire.