Podcast Episode 324: Is Social Security Going Bankrupt?
The topic of Social Security comes up all the time in our office, especially when it comes to its future. Is it heading towards bankruptcy as some suggest, or is this an alarmist notion blown out of proportion? To answer these questions and more, Certified Financial Planner® Heath Grossman joined the podcast to offer his perspective on the much-debated future of Social Security.
The biggest concern for pre-retirees and retirees is whether there will come a time when the benefits will dry up completely. Heath breaks down the core of the issue on the show, but the increased longevity by Baby Boomers paired with less money coming into the fund has brought about the issue. That’s the reason why projections tell us that it will go bankrupt by a certain date.
That’s the math, but what’s the reality? Politicians will likely leverage this issue during campaigns and a solution(s) will be created before the benefits dry up. There are different ways to solve for the issues Social Security faces. One proposed solution is to raise the full retirement age, which would effectively be a benefit cut without directly calling it one. Another suggestion is the introduction of means testing, which could reduce benefits for those with significant retirement savings.
So much of this is out of our control but there are some things that are within our control. Heath emphasized the need for younger generations to start taking their retirement into their own hands by saving diligently in retirement accounts and building up a nest egg for the future. And for those that are approaching retirement and getting ready to take Social Security, sit down with a financial professional and put a plan in place. Don’t react to the headlines by taking your benefits as soon as possible because that might not be your best option.
The future of Social Security may seem complex and fraught with challenges, but it is far from a lost cause. To wrap up the podcast and the conversation today, it is crucial to start planning for retirement early, base Social Security collection decisions on individual retirement income strategies, and stay informed about potential changes and their implications.
Remember, it’s about navigating the twists and turns of Social Security’s future, not fearing them. If you want to learn more about Social Security and the strategies you need to be considering, reach out and get one of our Social Security Decision Guides for free.
Here’s what you can expect to learn in this episode:
- While it’s not necessarily sensationalized, Heath doesn’t believe it will go bankrupt.
- How Social Security pays out its benefits and why the fund is running out.
- Don’t let this concern lead you to take your benefits as soon as possible for that reason only.
- What are some of the things that could be done to fix the problem?
- Should you be prepared for the Medicare age to rise as well?
- What are the things we can control related to planning and Social Security?
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Podcast Episode 407: Breaking Down the Retirement Planning Conversation
Prefer to watch? Click here to watch and listen on YouTube. What does it look like when your retirement plan starts to come together? At Johnson Brunetti, that clarity begins in our third meeti… -
Podcast Episode 406: What Happens in an Advisor Follow-Up Visit
Prefer to watch? Click here to watch and listen on YouTube. What happens after your first meeting with a financial advisor? We’re looking inside meeting number two in our retirement planning pr… -
Podcast Episode 405: What to Expect at Your First Financial Advisor Meeting
Many people feel hesitant or intimidated about meeting with a financial advisor. They may worry about facing a high-pressure sales pitch or feel unprepared for the questions that could arise. At J… -
Podcast Episode 403: How to Approach Finances in a Second Marriage Later in Life
Getting engaged later in life is an exciting time, but it requires different financial planning conversations. With blended families, different retirement timelines, and evolving goals, couples in… -
Podcast Episode 404: Financial Goals You Shouldn’t Overlook
When it comes to preparing for retirement, most people focus on the obvious goals of saving enough and building an emergency fund. But in this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and … -
Most Asked Social Security Questions
It’s no question that Social Security plays a crucial role in retirement planning, helping to provide a stable income stream for millions of recipients. In this week’s Better Money Boston with … -
Podcast Episode 402: How Often Should You Meet with Your Financial Advisor?
A good relationship between a client and their financial advisor relies on clear communication and regular check-ins to ensure everything is on track. In this episode of the Money Wisdom podcast, … -
Are My Social Security Benefits Taxable?
If your total combined income exceeds certain thresholds, up to 85% of your Social Security benefits may be taxable. Understanding how Social Security is taxed can help you make informed decisions… -
Right Time for Social Security
Contrary to popular belief, waiting to claim Social Security until age 70 to get the maximum benefit is not the best decision for everyone. So, when is the right time? In this week’s Retire Wis… -
What is the Social Security Fairness Act?
You may have heard about the Social Security Fairness Act, which was signed into law on January 5, 2025. But what is it and who does it help? In this week’s Money Wisdom Question Series, Ian Fe…