On This Week's Show Fraser Discusses how the Social Security system is under siege as we begin 2017.
Vero Beach, FL, January 10, 2017 (Newswire.com) - The Social Security system is under siege as we begin 2017. Politicians and academicians from all sides are calling for major changes. Congress will have no choice but to someday examine some unpalatable options like higher Social Security taxes, reduced benefits, and delaying the start of Social Security benefits past the current age 62.
One thing seems certain with our current Social Security system : It is running out of money at today’s payout ages and rates. Think of the millions of retiring Boomers, who are living longer and longer, withdrawing benefits from the fund, and it’s simple math to see that our Social Security Fund, as structured today, is unsustainable. Please read this article from the Chief Actuary of The Social Security Administration: https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html.
It makes common sense that the Social Security fund is shrinking. Much of it has to do with U.S. demographics. More people are taking out of the system, versus contributing into the system. Presently, and for some time to come, many more Boomers are taking money out, while fewer are working and contributing into Social Security in 2017. Going forward, the United States is at virtual Zero Population Growth, so don’t count on an influx of contributors (i.e. – those who work and pay into Social Security ) from the U.S. workforce for at least one generation.
In addition, today’s contributors are often mid to low income, having seen their Wages flat to lower for some years now. So for a variety of reasons, Social Security contributions are not presently keeping pace with payouts. Who expected people to live so long? That’s the 800 pound gorilla in the room: The fact that those collecting Social Security benefits today are likely to live to a very ripe old age with today’s modern medicine. Consider that a person who starts collecting Social Security at age 62….may collect that check for almost 30 years based on modern mortality tables and longevity expectations. That’s a lot of benefits. Who’s going to pay them?
Examine the future demographics of the USA, and the math is a bad brew for the solvency and longevity of the Social Security Trust fund, with today’s rules. Something has to give: Higher Social Security taxes, Reduced Benefits, or delaying benefits from age 62 to a later age? The quote in the linked article above from The Chief Actuary for Social Security Administration itself said that the Fund will exhaust in 2037, unless something changes. So get ready for a battle royale in every way – political, financial, and cultural – when our Lawmakers someday finally have to bite the bullet, and fix Social Security so that it does not run out of money.
For anyone collecting, or preparing to collect, Social Security benefits, this Press Release is important, because Social Security is a big part of Your Life, until the day you die. Here’s a great article about how important your Social Security is to you and your Retirement. http://bit.ly/1UxQQYy
Learn about your Social Security benefits at www.ssa.gov, and how your Social Security benefits affect your Income Taxes.
Fraser Allport, the Owner of Safe and Smart Money, LLC, can help you understand and optimize your Social Security benefits, whether you are already collecting benefits now, or preparing to start benefits. You can schedule a time to talk with Fraser for a complimentary 15 minute telephone conversation about you and your Social Security benefits by Clicking Here or visiting either www.fraserallport.com. or www.safeandsmartmoney.com
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Source: Fraser Allport - The Total Advisor™