OFFICE HOURS: Monday 6:30 AM - Thursday 5 PM | Friday 6:30 AM - 3:30 PM PST
OFFICE HOURS: Monday 6:30 AM - Thursday 5 PM
Friday 6:30 AM - 3:30 PM PST
OFFICE HOURS: Monday 6:30 AM - Thursday 5 PM | Friday 6:30 AM - 3:30 PM PST
OFFICE HOURS: Monday 6:30 AM - Thursday 5 PM
Friday 6:30 AM - 3:30 PM PST
However, the program has encountered persistent challenges in recent years, which may have implications for your monthly payments. Whether you are currently in retirement or approaching it in the near future, it is crucial to be aware of three significant Social Security issues and understand proactive measures to safeguard your retirement.
1. Its Trust Funds are Running Out
Social Security predominantly relies on payroll taxes to sustain its benefit payouts. Presently, contributions from today’s workforce, in the form of taxes, fund benefits for current recipients. Nonetheless, in recent years, the program’s income has fallen short of meeting its full expenses.
To bridge the deficit, the Social Security Administration has tapped into its trust funds. While this measure has staved off benefit reductions this far, it’s imperative to note that these trust funds are not inexhaustible. According to projections from the SSA Board of Trustees, the funds are expected to deplete around 2034. Beyond this point, taxes and alternative revenue streams will likely cover only approximately 80% of forthcoming benefits.
Without a viable solution from policymakers, there is a looming possibility of a 20% reduction in benefits by the year 2034. It underscores the urgency for proactive measures to address the sustainability of Social Security.
2. Potential Solutions could cost Retirees
The good news is that policymakers are actively addressing this concern, exploring various potential solutions. However, there is a catch, certain proposals may have implications for your benefits.
One widely endorsed and impactful solution involves taxing income exceeding $400,000 annually. Currently, only income up to $162,200 per year is subject to Social Security taxes as of 2023. By imposing higher taxes on individuals with higher incomes, this approach aims to increase the program’s financial foundation.
On the other hand, other solutions center on reducing Social Security’s expenditures. One such proposal suggests elevating the full retirement age from 67 to 68, or even potentially up to 70. This adjustment would warrant older adults to postpone receiving their full benefit amount, therefore diminishing the total benefits accrued over their lifetime.
Additionally, there have been suggestions from lawmakers to diminish benefits for higher earners. Although the specifics of this proposal remain unclear, including who might be affected and the extent of potential benefit reductions, the objective is to reduce Social Security payouts, thereby preserving more funds for lower-earning beneficiaries. As these speculations unfold, it becomes crucial for individuals to stay informed about potential changes and their impact on retirement benefits.
3. Benefits are losing buying power 
Social Security is structured to theoretically align with inflation, with beneficiaries typically receiving a cost-of-living adjustment (COLA) each year for this purpose.
Despite these efforts, the COLAs have proven insufficient to adequately match the pace of inflation. Research conducted by the Senior Citizens League reveals that Social Security has experienced a decline of approximately 40% in its purchasing power since the year 2000. Consequently, the real value of benefits has diminished, making it increasingly challenging for retirees to sustain themselves solely on Social Security. Keeping pace with the rising cost of living has become a growing concern, emphasizing the need for a thorough examination of Social Security’s ability to provide for retirees in the face of ongoing economic changes
Social Security faces significant challenges, many of which are beyond your influence. At Reagan Gold Group, you can speak with a commodities specialist about physical gold or silver, or a gold or silver backed IRA, to hedge your portfolio. Take control with tangible assets that do not rely solely on the government. Constructing a diversified portfolio that includes precious metals emerges as a prudent strategy to hedge and preserve your wealth.
Book a FREE consultation to get started. This is the time for all Americans to intervene and take ownership of their own wealth with no interventions. Contact Reagan Gold Group today and find out more about the preservation of your wealth. When it comes to your assets, there’s no better time than the present to take action.
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