Is Social Security Broke?

Tim Rosen: Today, the US News and World Report came out with their findings that Social Security is broke, and to most of you that is no surprise. They’ve actually updated the numbers that, as of last year, they reported that Social Security is good through 2017, referring to the trust fund for Social Security. They’ve now changed that and updated it to 2016.

What I strive to do here at TimRosen.tv and Conservative Money Talk is to take the news and interpret it and to share it with you in a way that you can either benefit from it or protect yourself from it. So what do we do with this news that most of you knew anyway; that Social Security is broke? What do we do with that?

Well, one: if you’re already retired you have priority here as far as your Social Security benefits. If you’re already drawing then you’re pretty much safe. For those of you that are still working and are hoping to get Social Security at some point, well, you’ve got a challenge there. Expect to see them increase the amount of Social Security that you pay into as a percentage of every paycheck. Right now it’s 7.5%. You could expect that to go 8.5% so they can make up for this deficit. You should also expect to see them draw out and extend the age that you qualify for Social Security benefits.

Bottom line, what does it all mean: don’t count on Social Security for your retirement. When it first came out it was designed to keep you from being destitute, from being hungry and if you’re lucky enough to get some, maybe that’s what it will do.

But, my encouragement to you about what does it all mean: pay yourself, build up your wealth. You can pay yourself monthly and nowadays with online banking, ING Direct, Capital One, maybe your credit union has a savings account that you can add to automatically every month. Out of sight, out of mind. You can make it happen. You can also invest in the market. There are great opportunities if you have time to be in the free markets right now and benefit over time to keep ahead of inflation and to have some resources from which to draw from to create your retirement income.

That’s today’s news.

  • Share/Save/Bookmark


May 19, 2009 | Filed Under Save Social Security 

Comments

One Response to “Is Social Security Broke?”

  1. LINDA AUSTIN on July 8th, 2009 3:56 pm

    I HAVE WORKED ALL MY LIFE. STARTING AT AGE 16, AND NOW I MY NOT RECEIVE WHAT I HAVE PUT IN. I AM NOW 57 YEARS OF AGE. IF WE WOULD NOT GIVE MONEY TO THOSE WHO DIDN’T EVEN PUT IN AND QUIT GIVING TO EVERYONE THAT COMES IN THIS COUNTRY. THE PEOPLE OF THE US WOULD HAVE MONEY THEY PUT IN. I HEAR ALL THE TIME ABOUT, PEOPLE HAVING BABIES OVER HERE JUST SO THEY CAN RECEIVE FUNDS FROM US. IF, YOU DIDN’T WORK TO PUT IN YOU SHOULD NOT RECEIVE. SOCIAL SECURITY YEARS AGO WAS FOR THE OLDER PEOPLE. NOW IT IS FREE GAME FOR ALL. I KNOW PEOPLE THAT RECEIVE SOCIAL SECURITY THAT ARE NOTHING BUT DRUNKS. AND USE EVERY PENNY THEY GET TO BUY MORE. WHY SHOULD I HAVE WORKED ALL MY LIFE TO GIVE MY MONEY AWAY. AND THE MONEY I PUT IN WAS INTRUSTED TO THE GOVERNMENT FOR SAFE KEEPING. SO WHEN I NEEDED IT, IT WOULD BE THERE. I SAY STOP GIVING MY MONEY TO OTHERS. IF YOU OR YOUR HUSBAND HASN’T WORKED TO PUT IN TO THE SOCIAL SECURITY, THEN DON’T TAKE FROM THOSE WHO HAVE.

    LINDA AUSTIN

Leave a Reply