Do you Expect Social Security to be Viable When You Retire?

We get asked frequently whether we think Social Security will be around when our clients are eligible to take it. Although we often hear negative news about the topic, there’s no way of knowing with certainty.

Social security is mostly funded by people who are currently in the workforce making payments into the system. It benefits those who are out of the workforce and now receiving from the system. Initially, when the Social Security program started, more people were working than in retirement. Now, as baby boomers move off the payroll, we’re starting to experience the opposite side of the coin. Right now, we know that 75% of social security payments are covered by working people. Additionally, the fund that is supposed to handle payments for the other 25% is fully funded until 2033 (it could also be sooner than that).

Social security is only deducted from paycheck until a person’s annual income reaches 150k a year. Most of the deficit problem could be solved if the government changed the law, and everyone paid into it regardless of annual income. This is one potential solution to the problem. There are also more drastic measures. Politicians sometimes talk about those with the intent of scaring the population into voting for one or another. The last people you want to listen to when it comes to the matter are the very people who oversee it.

Finally, from a financial planning perspective, we expect social security to be around because most people need it for their retirement plan to work and we know that there are reasonable solutions to the lacking of funds problem.

Download our free eBook: “Top Reasons Most Financial Plans Fail”

Have more questions? Contact Us

Casey Smith
President, Wiser Wealth Management

Click here to schedule a consultation with one of our financial planners.

Listen to Our Podcast:


Recent posts

  • When Helping Hurts: How to Set Financial Boundaries

Share This Story, Choose Your Platform!

Wiser Wealth Management, Inc (“Wiser Wealth”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). As a registered investment adviser, Wiser Wealth and its employees are subject to various rules, filings, and requirements. You can visit the SEC’s website here to obtain further information on our firm or investment adviser’s registration.

Wiser Wealth’s website provides general information regarding our business along with access to additional investment related information, various financial calculators, and external / third party links. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. Wiser Wealth does not endorse or accept responsibility for the content of any third-party website and is not affiliated with any third-party website or social media page. Wiser Wealth does not expressly or implicitly adopt or endorse any of the expressions, opinions or content posted by third party websites or on social media pages. While Wiser Wealth uses reasonable efforts to obtain information from sources it believes to be reliable, we make no representation that the information or opinions contained in our publications are accurate, reliable, or complete.

To the extent that you utilize any financial calculators or links in our website, you acknowledge and understand that the information provided to you should not be construed as personal investment advice from Wiser Wealth or any of its investment professionals. Advice provided by Wiser Wealth is given only within the context of our contractual agreement with the client. Wiser Wealth does not offer legal, accounting or tax advice. Consult your own attorney, accountant, and other professionals for these services.

Sign up for our newsletter!

Our latest blogs, podcasts, and educational videos delivered to your inbox weekly.