Will Social Security Pay Out Like It Does Now When We Retire? “Don’t Count On It”

An article on Fox Business summed up what we’ve known for some time now… Social Security is a raw deal for all of us under 50.   No matter if the program dissolves, or if the “surplus” runs out and we are stuck with 23% less income, we will not receive the same deal that Baby Boomers who retire today are receiving;

For those in their 20’s, 30’s and 40’s, what social security looks like in the future gets a little murky.  

“Social security will be around in some form, but there is either going to be higher social security taxes or a reduction in benefits, or probably combination of both,” says VandeVelde. “Everyone knows the story that social security is set to exhaust its reserves in 2033, but what a lot of people don’t realize is it doesn’t mean the end of the program.”

When it comes to the future of social security, experts say there are a few scenarios that can play out. Kisner says people who are making $300,000 a year in retirement could see their benefits reduced by a certain amount because of their income level. Another scenario, one that is sure to cause a lot of unhappiness, is raising the social security tax or the amount both employees and employers pay in. The government can also choose to move the full retirement age up to 70, something they did in the 80’s when they pushed the full retirement ages to between 65 and 67, says VandeVelde.

We will have to deal with either less money, an extension of the full retirement age, or both scenarios.   We will have to work more years to receive less money than generations before us.  

It’s not all bad news when it comes to social security. Although the baby boomers are exiting the work force in masse and taxing the social security system, the millennials, which is a group that rivals the baby boomers in size, are just now starting to make their money and contribute to the government program.

The millennials “are very good for the future,” says VandeVelde. “It doesn’t solve the social security problems, but it certainly helps.”

Do you know why Millennials are good for the future?  Because they have been getting robbed for years, and they don’t say anything about it.   The world needs saps like them to pay for this mess going forward… of course they’re good for the future!  Keep up the hard work, Millennials!

So what do future changes in social security mean to your retirement planning now? Experts say people who want to be extremely conservative should plan for zero social security, but a more realistic approach is to expect it being sliced by one-third or in half.

So, all of us under 50 should expect to pay full price, but receive one-third less than the current deal?   That’s ridiculous.  Why should we throw our money away like that?  The time to opt-out from Social Security is here.  My upcoming book (December release) will explain exactly why we should in greater detail.  Just know that the time is now, and it starts right here.

 

-RR

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