Here's When Social Security Runs Out of Money

According to the latest report from the Board of Trustees of Social Security, it will become insolvent in 2033. Without money in the trust fund to bolster tax receipts. The Social Security Administration will only be able to pay out 79 cents on the dollar in benefits.

Here are the details and how to plan.

Timestamps

0:00 - SS press release
1:55 - The Report
4:45 - Could they take action
5:52 - What could they do to fix it
8:09 - Open Social Security
9:46 - New Retirement
12:33 - Financial Freedom

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#retirement #socialsecurity #robberger

ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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[EJJ-EvArms]

You all could do what I did for 35+ years before I retired: I assumed SS would be caput, didn't rely on it at all for my projections, rely only on my own investments & savings, thus, anything I get from SS is bonus play money.

So in 9 years, my bonus play money will be cut by 21+% is how I am looking at it.

If you haven't stated taking this approach, I suggest you begin doing so promptly. Good luck, God bless.

[JohnDoe-ivyu]

Pay in 100%, get out 79%. Sounds like a bait and switch, uniquely American!

[chrisbeaulieu]

Great video Rob ! Love the use of AI to break down a 277 page report into consumable portions

[MrGoodaches]

Glad to see Rob investigate the new trust fund report.
Last weekend I saw a couple news articles and a new-to-me YouTube channel that talked up the new 2035 estimate. It took me less than 20 minutes to locate and read the summary of the trustee report. They stated 2033 unchanged.
I was looking forward to a trusted source such as Rob coming out with something on this recent misinformation.

[silvertrucker]

Running out of funny, maybe they should explain to me what they did with the money my deceased parents never got to collect. The money we all paid into our entire working years was not up for grabs by corrupt government.

[Jamie-dzdg]

LOL...same year I reach FRA

I ran scenarios in New Retirement based on a 25% cut to benefits.

[gregpulley]

I'm turning 62 this month, if the report stays true, then waiting until I am 67 or 70 to get a higher benefit does not seem to make sense. Seems I should start sooner rather than later.

[prkeene]

Typo in the video description which incorrectly states the year of OASI insolvency is 2023 not 2033 as stated in the report and Rob clarifies at the 5:41 mark.

[Idaho-Idaho]

Thanks for the video. I received my first SS payment just 4 days ago. My retirement planning did not include SS so the funds are a nice addition to my retirement income. I can't control how the fund will pay out so I don't or will not rely on it for any needed income.

[agallgood]

Rob, I see this report on Social Security & the ONLY politicians talking about cutting are the Republicans. The President has already a fully funded Social Security plan for many many decades. It just raises the Taxes on the Corporations & people making $400, 000 / year ( getting them to pay a Fair Share 15% ). To me & many others who worked all our lives to pay into SSA this plan makes more sense than ANY other plan I heard. Tax reform was talked about for years but NOTHING was ever done. I am retired & lucky enough to receive a small pension but Medicare & Social Security can be funded just by this small step. How about putting our elected Officials on Social Security & Medicare too !
Then they wouldn't be so quick to start talking about all those cuts they want to make !

[jaymetheaccountant]

Thanks for the info Rob. Definitely not a feel good message but nonetheless, we have to plan for the cut time to write to your senator.!

[RodHardin]

Just another variable that shows how even great planners can not account for everything. Good to have a plan, better to have other options.

[davef]

I may have missed it, but did the report assume no change to the eligibility age for Social Security benefits ?

[UdaySingh-jccu]

You definitely have my sub. This content is next level. For me Eledator was the turning point. Please keep doing what you do and keep being you, love it.

[roybarron]

Well my dad keep saying don't work you will lose your benefits but I'm like you just told me I'm losing it regardless

[rosqeauxsretreat]

How would the benefit reduction scenario you outlined in New Retirement address taxes? Seems like you’d be overestimating taxes by leaving SS income unchanged and dealing with the cut as an expense

[randolphh]

The SS insolvency issue has occurred 2-3 times in the past. I believe in those cases CURRENT recipients never saw cuts. Future recipients saw increased taxes, changes in claiming ages, and some benefit cuts. Those tactics would again work in the current situation as far as I understand.

[michaelg]

Agree with running models to bracket potential impacts of SS cuts. Seems the approach described herein for New Retirement will result in higher estimated taxes, since it represents the received current (original) SS received then reduced by an expense. Probably not critical considering the other variables / guesses in play, but an aspect to be considered.

[mc-kzzn]

Is it out of line to state that any person in the US, under the age of 45, will not see one penny of social security in their "retirement"?

[Zues]

great video Rob, thanks again. I wonder if all that is required to fix SS is to adjust the indexing method back to price adjustment vs. wage adjustment? Given the NAWI index has increased more than the CPI-W for decades now, it would seem an easy fix to adjust the indexing of one's earnings to CPI-W or even CPI-U. Of course, after year of eligibility (62), SS recipients get a CPI-W-adjusted annual COLA. From age 60 backwards, earnings are adjusted by the NAWI. I'm suggesting we adjust these earnings using the annual COLA. Thoughts?