What will happen to Social Security? Can you plan on it as a part of your retirement plan? How can you set realistic expectations for what’s to come? We’ll talk about this important piece of income planning.
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What part does Social Security play in your retirement plan? Statistically, most households don’t retire with much of a savings, so they rely on Social Security. While it’s not something you want to rely on solely, Social Security still plays an important role in your retirement income.
Some say the trust fund for Social Security is likely going to run out. How was this set up? What happens when there isn’t enough money to cover everyone? Will there still be money there by the time you retire? What is the future of Social Security?
If you are in your 60s or older, there’s a high probability that your Social Security will be taxed more. If you’re younger, there’s a good chance that Social Security retirement age may go up. Another possible fix is by having high incomers pay more. The more you make, the more you’re probably going to pay for this program. You probably won’t bring any more benefits out of it when you retire, but you’ll have just paid more. Nobody knows exactly how this will get fixed.
David predicts that Social Security won’t stop benefits all together, but that there will be adjustments made to the current set-up. Because Social Security is a fairly big asset for almost every family in America, it’s a topic worth understanding. How does Social Security fit in your retirement plan?
Listen to the entire episode or click on the timestamps below to skip to a particular segment.
[1:13] – Should you count on getting Social Security?
[4:25] – When will Social Security run out of money?
[8:47] – Will my benefits be reduced?
[11:07] – Will Social Security be there for me?
[17:00] – Most people ask David about Social Security.
“Taxes are likely going up, retirement age is likely going up, and your cost-of-living increase is likely going down.”
– David Dickens