Social Security is for Real
Lately Social Security has been pilloried in the news. For
years people have said it’s bankrupt and won’t be there when the Baby Boomers
retire. I believe that nothing could be further from the truth. Each year
Social Security pays out hundreds of billions of dollars in retirement
benefits. According to the Social Security Administration, even without changes,
it will be able to pay out 75 percent of retirement benefits for
generations. Inevitably there will be
changes but changes are phased in gradually. The last major revamping of the
program began under the Greenspan commission in 1983 and their changes will be
fully implemented by 2017 --- some 44 years later. As people live longer, the
full retirement age will likely be pushed up a few years although there will
still be early retirement options. The wages subject to Social Security taxes
likely will rise and the way inflation is calculated may
change. These changes amount to small cuts in benefits but are intended to
preserve the program much as we know it now. Social Security is completely
integrated into the fabric of American life and will probably outlive us all.
Anyone planning their retirement would be foolish not to incorporate Social
Security into their thinking.