The Future of Social Security 2022 Update
The Financial Future of Social Security - Update for 2022.
Will you receive Social Security in the future? In my opinion yes, but with significant changes. It is important to understand and stay updated on Social Security Benefits so you know what impact it will make on your retirement and can plan accordingly. In my webinars and workshops, I teach future retiree’s to be 100% in control of their retirement. Social Security was never intended to be the primary retirement income source for retirees. But a lack of education, planning, and saving has caused over half the people in the US to not have enough for retirement and rely on Social Security.
Take into consideration other key factors that have put stress on the program from the population aging, not because we are living longer, but because birth rates dropped from three to two children per woman. Basically, we don’t have enough younger population in the future to sustain the benefits for the aging population.
Here’s an update directly from the Chief Actuary of the Social Security Administration and The Board of Trustees.
As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted. At the point where the reserves are used up, continuing taxes are expected to be enough to pay 76 percent of scheduled benefits. Thus, the Congress will need to make changes to the scheduled benefits and revenue sources for the program in the future. The Social Security Board of Trustees project that changes equivalent to an immediate reduction in benefits of about 13 percent, or an immediate increase in the combined payroll tax rate from 12.4 percent to 14.4 percent, or some combination of these changes, would be sufficient to allow full payment of the scheduled benefits for the next 75 years.
Read the full financial status update https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.pdf
It doesn’t get any plainer than that. Benefit cuts and tax increases. All of which impact your retirement. Take control of your retirement and start planning today so you are not reliant on Social Security.
To your Happy Retirement!
Mike Brenhaug, author of Retire Happy Planning Guide