Are You Going to Lose Your Social Security Benefits?
“Am I going to lose my social security benefits?” is a question I have heard many times recently. My heart goes out to those who fear losing their benefits, which is why I am writing this article. The short answer is NO! If you are already receiving Social Security retirement income or are close to retirement age (late 50s or older), the chances that you will lose your Social Security benefits without them being replaced by something else are close to zero. You can stop reading this article if that is all you need to hear. Otherwise, read on!
The fact of the matter is that the Social Security program has been underfunded for a very long time. I believe that, combined with the media, fueling fear in an attempt to increase ratings, is causing unnecessary concerns surrounding social security. The truth is that it is a very popular program, and any politician who votes to slash benefits puts their job in jeopardy. Something does need to be done, but cutting benefits for those who are already depending on social security is way down the list of likely solutions.
Social security can effectively be fixed with less dramatic measures. If done soon, any one or combination of the following changes could help social security become fully funded again:
1. An increase in the full retirement age (a reasonable action as life expectancy continues to increase)
2. An increase in payroll taxes (FICA taxes)
3. Elimination or an increase in the income cap on FICA taxes
4. Increasing the earliest age Social Security can be taken
For those who are younger (under 50), I am not as optimistic. Although I think social security will still be around, it is likely to be “watered down” by the time you are retirement age. That means it is even more important for these individuals and families to be proactive in saving for retirement. Do what you can to max out your retirement contributions!
In summary, Social Security has been unsustainable for a while, but it can be fixed if our politicians act soon. I would encourage you to reach out to your local representative and tell them to make fixing Social Security a priority. If you have been worried about losing your social security benefits, I hope this article eases your fears and anxieties. If you are younger, I hope this article inspires you to increase your retirement plan contributions. Feel free to reach out if you have any questions or if you would like help with your retirement plan.
Written by: Brandon Carter
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