What should you know when it comes to Social Security in the future? Will it still be there for you when you need it? How should your retirement plan account for Social Security? We’ll talk all things Social Security on today’s show.
(Click the featured times below to jump forward in the episode)
Is Social Security in trouble? According to the Social Security website, the money will run out in 2034. What does that mean? Should you be worried? On today’s episode of the Cover Your Assets KC podcast, David talks us through the history of Social Security in order to further understand the future of it.
Let’s start from the beginning. When and how did Social Security get established? What’s the history behind Social Security? How has it changed from one politician to the next?
In the future, will it run out of money? It’s already giving out more money than it is bringing in. Will there be a new commission to fix the problems of Social Security? One change that sounds likely is pushing back the age you can begin to claim it. As people are getting older and older, it makes sense to start Social Security later on.
Right now, the most your Social Security that can be taxed is 85 percent of it. One of the easiest things to do is to make Social Security totally taxable, like your pension or the money out of your 401(k).
It’s important to have a plan for how and when you’re going to take Social Security. What role is Social Security going to play in your retirement income? If you’re in your 30s and 40s, you may want to save and invest as if Social Security is going away. Even though David thinks it will be there in some capacity, it’s hard to say what age you’ll be eligible and at what rate you will be taxed for it.
Listen to the entire episode or click on the timestamps below to skip ahead to a particular segment.
[1:07] – What is Social Security’s future?
[2:48] – How will we keep it going?
[4:03] – What’s the history of Social Security?
[11:05] – What are the potential fixes to Social Security’s problems?
[14:53] – What problems do we need to be prepared for?
“If you’re in your 50s or 60s, it’s highly likely that you are not going to have a reduction of Social Security benefits.”
– David Dickens