How Long Can You Count On Social Security?

With Americans living longer and the number of retirees growing, the question remains – how long will Social Security last? 

So, you’ve worked your whole life and looked forward to the day you could retire in ease and comfort. Though our working days eventually come to an end, the need for income never does. For decades, social security has provided a much needed monetary cushion of support for those who can no longer work. Now, under extreme pressure and near exhaustion, the forecast predicts the beginning of the end for Social Security by the year 2033 – perhaps even sooner.

Program Meltdown 

Challenges to the funding of social security have long been evident, but with several recent changes including payroll tax deductions, cost of living adjustments and retirement age qualifications, the future of social security is extremely uncertain, at best.

Read the in-depth trustees report on Social Security

According to Treasury Secretary, Timothy Geithner, pressure on social security funds has been mounting rapidly and without swift congressional action the life of the program will soon see it last days. Unlike Medicare, which will remain fully funded until 2024, social security will require some difficult trade-offs in order to sustain adequate funding. Swift and deliberate bipartisan movement is required or else the outcome will be dismal.

Rising Costs

With the cost of social security funding exceeding the GDP at exponential rates, vulnerable populations, particularly the poor and middle class, will see substantial hits to supplemental retirement income unless lawmakers begin acting now to put saving measures in place. With immediate attention, disruptive consequences for beneficiaries and taxpayers can be curtailed, giving people a chance to put other retirement income plans in place, and softening the blow of adverse impacts of a rapidly declining program.

Prepare Ye the Way

Preparation and strict financial planning is in order on the part of not only retirees, but those heading for retirement in the next 10 to 20 years. Waiting on stalling lawmakers, coupled with last minute efforts to plan for retirement income, could be catastrophic for those who have few or diminishing assets to live on in their golden years. Whether it’s through continued work, investments, savings, or other supplemental retirement income opportunities, now is the time to prepare for the future to ensure your retirement is adequately funded to sustain a healthy and comfortable senior life.

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