January 9, 2014

You need to understand how Social Security works

Social Security is one of those topics about which people have strong opinions… often based on misinformation perpetuated by political commentators.
“It’s important to remember that Social Security does not run out of money or go “broke” even when its key trust fund is exhausted in 2035, as projected in the 2013 Social Security trustees report. The report says that tax income would be sufficient to pay about 72 percent of scheduled benefits through 2087. Even with current trends, the program will be there, although with reduced benefits if absolutely no changes are made — which is not politically likely.”
“You are paying not only for retirement benefits, but also for disability and life insurance.” Learn more about how Social Security works so that you can have educated opinions about this important program. Read: “Social Security: A guide to critical questions” by Glenn Kessler for The Washington Post Fact Checker: http://www.washingtonpost.com/blogs/fact-checker/wp/2014/01/08/social-security-a-guide-to-critical-questions/
To learn more about potential viable solutions to the funding problem check out the Center for Retirement Research’s The Social Security Fix-It Book http://crr.bc.edu/special-projects/books/the-social-security-fix-it-book/

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