[Noozhawk’s note: One in a series of Social Security-related columns by Ameriflex representatives. Click here for a related article.]
Q. What does the future of Social Security look like?
A. This is a commonly asked question. In a recent poll, 64 percent of working people are “not too” or “not at all” confident that Social Security will continue to provide benefits of at least equal value to the benefits retirees receive today*. This is certainly a hot topic in the media and the political arena especially in an election year.
Beginning in 2022, expenses will start to exceed revenues and the securities fund will gradually be liquidated in order to pay promised benefits.
According to the 2012 trustees’ report released in April, in 2033 all the securities will have been liquidated and trust fund reserves will be exhausted. At that time, revenues will be sufficient to pay 75 percent of scheduled benefits.
While the Social Security system is not in imminent danger of being “bankrupt” or “going broke,” the pressure is on for changes to be implemented to ensure the continuation of the system long term.
Q. Did you know that if you are under age 60 you will no longer receive an annual statement from the Social Security Administration?
A. In 2011, the Social Security Administration stopped sending statements to everyone and has just recently began sending statements to those age 60 and over**.
Statements used to be sent annually to U.S. workers age 25 or older around their birthdays, detailing earnings, expected benefits and disability benefits. This detail is important as it allows workers to verify their earnings and taxes paid and check for any errors. As of May 1, the Social Security Administration added a new feature to its website. Anyone can now create an account and see their statements online.
*http://www.ebri.org/pdf/briefspdf/EBRI_IB_03-2012_No369_RCS2.pdf, Figure 38, Page 30
**www.ssa.gov — A Summary of the 2012 Annual Reports
— Justin Anderson, CFP, CRC, CLU, is a financial planner and Bibi Taylor, MBA, is the Social Security project coordinator at AmeriFlex, 3700 State St., Suite 310, in Santa Barbara. Call 805.898.0893 for more information. Financial advisors and registered representatives associated with AmeriFlex Financial Services offer securities and advisory services through SagePoint Financial Inc., member FINRA/SIPC. Insurance services offered through AmeriFlex Financial Services, which is not affiliated with SagePoint Financial Inc. or registered as a broker-dealer or investment advisor. Registered representatives may only discuss and/or transact securities business with residents of the following states: AR, AZ, CA, CO, FL, GA, IL, IN, MI, MO, NC, ND, NJ, NM, NV, NY, OH, OR, PA, PR, SC, TX, VA, WA, WI.