Will social security be gone when i retire(revised)

Will Social Security Be Gone When I Retire?

If you’re an American taxpayer, then you’ve likely included Social Security as a vital component to your retirement plan. Because of the troubles within the economy, you’ve probably also been bombarded with idea that Social Security will no longer be available to you by 2033. This thought has left most Americans feeling scared and helpless. So will Social Security be around when you’re gone? Read this article to find out once and for all.

Where is The Money Going At one point, there was over $2.6 trillion dollars available for retirees. For many years, the program was a success. But over time, our economy has suffered a financial blow, and still hasn’t quite recovered. The government borrowed against the $2.6 trillion trust fund reserve, and spent practically all of it. The only way the trust fund will be able to recoup some of that money is if the government continues to borrow against other revenue sources. But the government cannot do that because of the debt ceiling. As soon as 2033, all of the Social Security could possibly be gone.

The Good While it is true that the trust fund for Social Security could be exhausted as soon as 2033, it doesn’t mean that Social Security will not be available for retirees. Ruth Davis Konigsberg, Director of Arden Asset Management, states that Social Security obtains money to pay retirees through three sources: current worker tax, benefit payment tax, and interest on the $2.6 trillion trust fund. The government is borrowing against the $2.6 trillion trust fund. However, it is not borrowing against worker tax, and benefit payment tax. Therefore, only a portion of the Social Security program is being depleted, but not the entire program. About 75% of scheduled benefits will still be available between 2033 and 2088.

Is There a Solution It’s not too late to correct the problem. “Congress could enact changes that would ensure long-term fiscal health of the problem,” says, Emily Brandon, Senior Editor of Retirement at U.S. News. Phillip Moeller, business journalist at Time, agrees, stating “raising the ceiling until it once again covers 90% of the nation’s wage income could help.” Using a combination of a benefit cut or a small tax increase, are all viable solutions to potentially fixing the problem.

The Final Verdict The budget crises exposed a lot of untruths within the government, but by no means, does this indicate that there will be no Social Security available to young Americans at all.

Assuming that the government does nothing to fix the issue, your worse case scenario, is that you will receive a benefits check, but it could possibly be 25% less than what was originally anticipated. That being said, if you have any concerns about the safety of your financial future, you should meet with a financial advisor to discuss a savings plan today.