Your Social Security Statement – Page One.

Beginning  January  1,  2011  every  day,  8  to  10,000  baby  boomers  will  turn  65.  That  will  continue  for  18  years.
Our government  has  promised  those  baby  boomers  and  their  children  and  their  grandchildren  trillions  of  dollars  in  the  form  of  government  entitlements.
Let’s  examine  just  one  of  those  entitlements,  Social  Security.
Beginning  in  1999  the  Social  Security  Administration  began  providing  reports  on  your  Social  Security  benefits.
Most  people  have  never  read  the  front  page  of  their  Social  Security  report.  Virtually  everyone  opens  the  report  up  to  look  inside  to  see  what  their  monthly benefit  is  going  to  be.  But  on  the  front  page  of  every  report  is  a  paragraph  we  think  is  very  important.
In  March of 2008  this  is  what  the  paragraph  said,  “In  2017  we  will  begin  paying  more  in  benefits  than  we  collect  in  taxes.  Without  changes,  by  2041  the  Social Security  trust  fund  will  be  exhausted  and  there  will  be  enough  money  to  pay  only  about  75  cents  for  each  dollar  of  scheduled  benefits”.
This  is  not  something  new; this  is  not  something  we  didn’t  already  know.  The  Social  Security  system  is  in trouble.  What  is  interesting  though  is  the  government  is telling  us  just  how  bad  it  really  is.
Two  years  later  in  March  2010  that  same  paragraph  in  that  same  report  said  this : “In  2016  we  will  begin  paying  more  benefits  than  we  collecting  taxes  (notice we  lost  a year,  the  crossover  point  is  coming  sooner).
Without  changes,  by  2037  the  social  security  trust  fund  will  be  exhausted  (notice  we  lost  four  years,  the  fund  is  running  out  of  money  sooner)  and  there  will  be enough  money  to  pay  only  about  76  cents  for  each  dollar  of  scheduled  benefits”.
We  are  running  out  of  money  faster  but  they  are  going  to  give  us  a raise,  how  amazing  is  that!  What  kind  of  math  are  they  using  to  get  those  numbers? Where  are  they  going  to  get  the  money?
The  2011  and  2012  reports  said  essentially  the  same  thing but  with  two  exceptions,  the  crossover  point  was  changed  from  2016  to  2015  and  they  were  going  to increase  our  payout  to  78  cents  on  the  dollar!

Whoops – it happened in 2010, according to the New York Times.

You  might  be  interested  to  know  that  a  New  York  Times  article  in  March  2010  actually  stated  that  we  had reached  the  crossover  point  where  more  benefits were  being  paid  than  money  was  being  collected  as  of  2010.
The  reason  this  is  important  for  you  to  know  and  understand  is  that  one  of  the  unknown  consequences  of  the  recession  that  began  in  2008  was  that  we  had unemployment  rates  in this  country  exceeding  by  some  estimates  14%  or  15%.  These  unemployment  rates  were the  highest  since  the  Great  Depression.
Unemployed  people  don’t  pay  into  Social  Security!  It  has  actually  taken  us  several  years  to  get  back  on  track  so  the  Social  Security  trust  fund  is  now  several years  behind  it’s  projected  schedule.

Today  Social  Security  income  makes  up  about  41%  of  the  average  Americans  retirement  income.  If  the  possibility  exists  that  your  future  Social  Security  income  might  be  reduced by  20%  or  more,  wouldn’t  it  make  sense  to  begin  creating  a  financial  backup  strategy  now  instead  of  waiting  until  you  get  that  letter  telling  you  your  benefits  are  going  to  be  substantially cut?

Call me now, so we can setup a webinar appointment for you. Jennifer Hansen 845-649-7487

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July 19, 2014 · Jennifer · No Comments
Tags: , , ,  · Posted in: SOCIAL SECURITY, SS Statements

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