Social Security Concerns for Current and Future Retirees

It’s been announced! The Social Security Administration (SSA) published a press release last year and again on April 22, 2019, that states, “The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to become depleted in 2035 …” (this new press release adds another year of benefits between the trust funds). It’s true.

The fact is, in 2020, SSA costs will surpass income, and this will impact many individuals and families. This news has current and future retirees very concerned and searching for answers. To contribute to this pain, consider that baby boomers reaching retirement ages create an added level of uncertainty. Just think, the fund’s workers paid into most of their lives and are now expecting for a sustainable retirement and nearly depleted. Part of the issue stems from the fact that Social Security is funded merely from tax revenue and interest on the trust funds. The truth is simply this: funds will begin to exceed income within the year.

Those nearing retirement ages are asking some serious questions: Will I be issued a social security check in my later years? Will the amount of my monthly social security payment be what I’ve worked for? Should I take it out on the earliest date, or wait until I’m 70? Do I need an alternative financial portfolio I can rely on?

The government has already indicated it may not be able to pay full benefits to those who are under the age of 72. Imagine the current mindset of
the 77 million post World War II baby boomers born between 1946 and 1964. These people are rampantly meeting with their financial advisors to re-evaluate their retirement portfolios.

Many fixed-income Americans will not be able to sustain without their expected monthly benefit amount from Social Security. It is an amount you have known about and strategically planned for over your many years as an employee.

In addition to this concerning news is the latest update on Medicare insurance. This hospital insurance fund is expected to be depleted in less than ten years (by 2026), and the added costs for this critical senior-age insurance will skyrocket. The depletion of these funds is sure to turn into a real crisis for many retirees that have paid into the system and counted on these returns for their financial future. Not only that, the repercussions of these failing systems will affect the economy with a significant hit to the national debt and the value of the dollar.

What can be done? The government may make choices regarding for you regarding Social Security, Medicare, and Disability and, like every decision they make, the results are positive for some and negative for others. The real question is, what can you as an individual do to counter this disappointing news? Regardless of the government’s response, you as individuals must make financial retirement plans that secure your assets into the future. These uncertain times will never be the same as they once were. You must take your financial future into your own hands! There is no silver lining you can count on when it comes to our government insurance funds.

Look at the current headlines for precious metals, and you’ll see that gold is one solution some retirees have already thought of. The demand for gold is rising as is the cost, and the unsettling news about Social Security and Medicare are driving investors to rethink their financial portfolios. A diversification plan is essential, and a tangible asset is attractive to many seniors.

Even Russia is on the bandwagon, acquiring gold by millions of ounces. They are shown to hold 18% in precious metals in central banks. Russia owns over $85 billion in gold. Russia is, in fact, one of the leading producers of gold. The central banks, in general, have relied on gold as a stronghold for their national reserves.

According to Statista.com, “Gold has always been one of the world’s most precious and coveted metals. Rarity is the primary reason for its value. Estimates on global reserves are not much higher than 56,000 metric tons.” Gold is also a popular commodity for the electronics and jewelry industries. Statista.com also states that the United States is the 4th largest gold producing country, with the highest gold product from Nevada. Eight out of the top ten gold mines in the United States are located in Nevada. “Over the last decade, global demand for gold has increased constantly.”

Many are looking at this precious metal as a hedge for their retirement portfolio in the case
of a downturn or financial crisis such as our Social Security situation. A diversified portfolio that includes stocks, bonds, and precious metals is an attractive alternative when you consider that our government programs are failing us and the economy is in a constant state of fluctuation. Investors, especially those nearing retirement, are re-evaluating their portfolios to compensate for the kind of press release we just received from Social Security. The concerns are high for current and future retirees, family member, and new generations, but a tangible asset you can touch may well be the real security you need for your retirement peace of mind.

You may not want to wait to review your financial portfolio and consider a replacement for the monthly Social Security benefit you were expecting — just in case the government doesn’t come through for you. These funds today are somewhat like an inheritance; you really can’t count on them.

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