{"id":816,"date":"2022-05-19T14:06:56","date_gmt":"2022-05-19T20:06:56","guid":{"rendered":"http:\/\/gpswp.com\/ursadvisory\/?p=816"},"modified":"2022-05-19T14:07:17","modified_gmt":"2022-05-19T20:07:17","slug":"will-i-be-able-to-rely-on-social-security-when-i-retire","status":"publish","type":"post","link":"https:\/\/gpswp.com\/ursadvisory\/will-i-be-able-to-rely-on-social-security-when-i-retire\/","title":{"rendered":"Will I be able to rely on Social Security when I retire?"},"content":{"rendered":"\n\n
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Here’s what to keep in mind when planning your future around Social Security benefits.<\/p>\n\n\n\n
When the Social Security Administration (SSA) was founded in 1935 following the Great Depression, it was meant to be a source of financial security for older Americans. Yet, a common concern today among Americans, especially the younger demographic, is that Social Security might not be around when they reach retirement age. This is an especially valid concern as ongoing trends seem to suggest that the viability of Social Security is in danger.[i]<\/a><\/p>\n\n\n\n Taking this into consideration, let\u2019s explore the present and forecasted financial state of Social Security, what the issues are, and what solutions are available to remedy the situation. It\u2019s impossible to predict exactly what lies ahead, but this information can paint a useful picture of where Social Security is headed.<\/p>\n\n\n\n The financial state of Social Security<\/strong><\/strong><\/p>\n\n\n\n The Social Security program’s expenditures include all retirement, survivor, and disability benefits.<\/p>\n\n\n\n In 2017 the program had a surplus, in 2018, what seemed like a sizable cash reserve at 2.9 trillion. While the reserve appears steady, the 2021 SSA report states that the program\u2019s finances have negatively impacted through the lack of payroll taxes paid during the pandemic and short-lived recession of 2020.[ii]<\/a><\/p>\n\n\n\n According to the SSA report, The OASI Trust Fund, which pays retirement and survivors benefits, will be able to pay scheduled benefits on a timely basis until 2033, one year earlier than reported last year. At that time, the fund’s reserves will become depleted and continuing tax income will be sufficient to pay 76 percent of scheduled benefits.[iii]<\/a><\/p>\n\n\n\n For now, however, Social Security’s reserves are financially stable. Those who are receiving a Social Security benefit or expecting one soon \u2013 can most likely count on it. The question is, for how long? While following internet rabbit holes such as the popular rumor that the government “raided” Social Security’s reserves, and therefore, there are none left is probably bad practice. However, this SSA report does seem to suggest is that younger Americans might find themselves in trouble if they don\u2019t start planning now.[iv]<\/a><\/p>\n\n\n\n A downward spiral to be expected<\/strong><\/p>\n\n\n\n Future deficits in Social Security were already being forecasted in 2018, however nobody was prepared for the monumental impact the pandemic and 2020 recession had on employment, earnings, interest rates, and GDP. Here’s a glimpse at the revenue and expenditures of Social Security, or OASDI, based on the Social Security trustees’ intermediate assumptions.<\/p>\n\n\n\n