I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
I'm sorry about your brothers. Waiting for higher SS payouts can indeed feel risky. that's why it's important to consider planning for retirement early. Have you thought about working with a financial advisor? In my opinion They can help make your money work better for you in retirement and plan for unexpected expenses. It might give you more peace of mind and help you enjoy your retirement more. Best wishes!
I would to say that this is one of the best and most honest looks at the future of SS. Good job! Almost everything you said was 100% correct, until the the every end at 19:26 where you say "You are all in jeopardy a 23% SS cut". I disagree with how you worded that. I see this mistake everywhere. The SSA didn't actually say that in the way you you implied it. You imply that each of us individually face a 23% cut. We don't. We collectivly face a 23% cut. That doesn't mean it is an even cut. What the SSA has said is that there is a 23% shortfall in revenue. What they have NOT said is that everyone would get a 23% cut in benefits. Lazy journalism has said that. If Congress fails to act and the SSA has to make cuts, the reality will be far different. It will not be a straight across the board 23% cut for everyone. There are actually a number of methods that can be deployed, each with advantages and disadvantages. My bet is that they will adjust the PIA formula percentages from 90/32/15 to perhaps 90/25/2. This way the people who recieve lower benefits are not impacted at all, and those who receive the most generous benefits are the most impacted. In other words, those who receive the largest benefits will carry the cuts. SS benefits are defined by law. So really the SSA can't just cut benefits. What they will have to do is issue an IOU for what is cut. This can be done in the form of a financial warrant. So if you are someone who used to get a large SS benefit, then you might get half the benefit as a payment, and the other half as a warrant. The warrant is an IOU that means the goverment owes you money. I imagine that after a few month Congressmen will get tired of angry constituates showing up at their office with warrants from the SSA that they can't do anything with and will get off their butts and fix it.
Hey Ron, thanks for watching and bringing up the clarification about the 23% cut - the specific measures to manage this funding shortfall have not been definitively outlined by the SSA, and we appreciate the ideas that you have brought to the discussion table. It’s crucial that we continue to have informed discussions about Social Security so that we can all better plan for the future.
Regarding increasing the retirement age. The problem with that is that it won't solve the immediate funding issue. It is a long term solution, but SS will run short of funds in early 2030's.
Great video, thanks for explaining everything. Just FYI, a news release from the SSA was released on May 6, 2024. It is now 2035 and 83% due to the strong economy and other factors. I am 57 so have been watching this closely as one factor of when to take SS.
Thanks for commenting! The 83% funding and 2035 exhaustion date in the new report refer to the combined Social Security and Disability Insurance Fund. When just looking at SS, the fund is still projected to exhaust in 2033, but estimated benefit payouts from program income (FICA taxes mostly) have increased to 79% of liabilities from 77%. In this video, we were only referencing the SS trust fund, not the combination of SS and DI. Part of the reason the disability fund longevity expectations increased this year is because they reduced the assumption of the number of people taking disability in the future. They also increased projections for labor productivity based on 2023 economic growth being a bit higher than projected in the previous year’s report. I assume the increase in funding from 77% to 79% is also due to increased assumptions for labor productivity over coming years. Again, thanks for watching and commenting!
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
Most likely scenario is some combo of: 1. Raise cap on annual earnings that can be taxed for FICA (currently $168k adjusted annually). 2. Raise level of taxation on those earnings between the current threshold & new threshold. 3. Have company contribution to FICA at more than 50%. 4. Reduce further the benefit level for those taking at 62. 5. Reduce the upper end of the benefit offered. They’ll likely package this with some tax cuts in other areas to make it palatable, such as: - Higher exemption level on Estate Tax - Higher exemption level on Real Estate transaction tax when selling a home - Raise the income levels and contribution amounts eligible for Roth IRA. We 100% should get something done in the next Congress since either POTUS will be in their lame duck term (which means it probably won’t happen).
I understand why we have surviving spouse benefits, but they’re also a drain on the fund. We’ll have to increase social security contributions to keep it going, and soon. What would an increase of 1-2% do to the fund? What amount is needed to keep it funded to 100%? I’m all in favor of a tiered system of increasing SS contributions and removing the cap altogether. Increasing immigration would help a whole lot too. Reducing benefits based on a means test is also wise.
Thanks Troy for this straight forward presentation. If I were “King for a day” I would require that all voters and politicians view this video. Additionally, I would require anyone running for Congress or the Presidency to present their proposed solution prior to Election Day. Now, back to the real world……..😏
The video title actually says - "Strategies to Safeguard Your Retirement". Went through the entire video but nowhere does it state anything about how to safeguard retirement.
Hi Chitra, thank you for pointing this out - we've adjusted our title to better reflect the content of the video. Thank you for taking the time to watch our channel and for being part of our community!
Maybe some politicians can hire some smart mathematics. All the politicians just kick the can down the road ! So the nect president or one after is going to be the "Bad" guy . Why the extra complexity of taxing something you just gave someone , just give less to start with .
Not the best review of options. Clearly payroll taxes will go up and it will help, and high earners will pay more. Benefits will go down indirectly by age adjustments, and means testing. There are also ways to decrease all the secondary beneficiaries like children and spouses. Honestly at the current time some people, us included can get very high amounts of Social Security, yes we “earned it” but we also don’t need as much as we are getting.
Why do you decide to give misinformation? There isn't any motivation to make simple adjustments to the funding. It is VERY unlikely no changes would happen in the next 9 years to allow fully funding benefits. Social security is a third rail for a reason. Voters love it and would vote out anyone putting there benefits at risk. Inform, don't politicize, or clickbait, please
Nothing he said was misinformation. You just don't want to hear the truth and don't want to face the reality of who is putting those benefits at risk. If they don't fix it - and they've been sticking their heads in the sand for decades now, refusing to address the problem - then whether you like it or not, the benefits will be cut. Voters can't wish more money into the Trust Fund than there is, and when the FICA taxes are only enough to fund 77% of the benefits promised, then benefits will be slashed by 23%. Thank your cowardly politicians!
I started my SS at 62 1/2, my wife who is 20 months younger than me started at 62. With my pension for working 25+ years we’re doing just fine.That was over 3 years ago & we never looked back. Haven't touched our investments other than to travel. I had two brothers die of cancer 3 years apart. One died at 62 & never drew a dime of his SS. The other died at at 65 & drew 10 months. Let's be honest here, the reason the Government is offering you a bigger payday at 70 is because they're banking on you not making it!
I'm sorry about your brothers. Waiting for higher SS payouts can indeed feel risky. that's why it's important to consider planning for retirement early. Have you thought about working with a financial advisor? In my opinion They can help make your money work better for you in retirement and plan for unexpected expenses. It might give you more peace of mind and help you enjoy your retirement more. Best wishes!
Hey David, we're sorry to hear about your brothers - thanks for sharing your experience and insight!
I would to say that this is one of the best and most honest looks at the future of SS. Good job! Almost everything you said was 100% correct, until the the every end at 19:26 where you say "You are all in jeopardy a 23% SS cut". I disagree with how you worded that. I see this mistake everywhere. The SSA didn't actually say that in the way you you implied it. You imply that each of us individually face a 23% cut. We don't. We collectivly face a 23% cut. That doesn't mean it is an even cut.
What the SSA has said is that there is a 23% shortfall in revenue. What they have NOT said is that everyone would get a 23% cut in benefits. Lazy journalism has said that. If Congress fails to act and the SSA has to make cuts, the reality will be far different. It will not be a straight across the board 23% cut for everyone.
There are actually a number of methods that can be deployed, each with advantages and disadvantages. My bet is that they will adjust the PIA formula percentages from 90/32/15 to perhaps 90/25/2. This way the people who recieve lower benefits are not impacted at all, and those who receive the most generous benefits are the most impacted. In other words, those who receive the largest benefits will carry the cuts.
SS benefits are defined by law. So really the SSA can't just cut benefits. What they will have to do is issue an IOU for what is cut. This can be done in the form of a financial warrant. So if you are someone who used to get a large SS benefit, then you might get half the benefit as a payment, and the other half as a warrant. The warrant is an IOU that means the goverment owes you money.
I imagine that after a few month Congressmen will get tired of angry constituates showing up at their office with warrants from the SSA that they can't do anything with and will get off their butts and fix it.
Hey Ron, thanks for watching and bringing up the clarification about the 23% cut - the specific measures to manage this funding shortfall have not been definitively outlined by the SSA, and we appreciate the ideas that you have brought to the discussion table. It’s crucial that we continue to have informed discussions about Social Security so that we can all better plan for the future.
We haven't run out of war money, or education money, or infrastructure money etc?
Infrastructure 🤔 might have to disagree on that one.
Seen our roads lately?
Or water mains?
Or sewer mains?
@@mikefarmer4748
I live in Massachusetts.....cones and barrels abound. 😂
They should simply increase payroll taxes on a rolling basis such that deficits are not incurred
Hey @sbkpilot1, thanks for watching and sharing your ideas!
Or they can raise the cap on income that gets taxed.
Regarding increasing the retirement age. The problem with that is that it won't solve the immediate funding issue. It is a long term solution, but SS will run short of funds in early 2030's.
Why not reduce military spending by 40bn that would still leave the military with a very large budget
Great video, thanks for explaining everything. Just FYI, a news release from the SSA was released on May 6, 2024. It is now 2035 and 83% due to the strong economy and other factors. I am 57 so have been watching this closely as one factor of when to take SS.
Strong economy? 🤣
Thanks for commenting! The 83% funding and 2035 exhaustion date in the new report refer to the combined Social Security and Disability Insurance Fund. When just looking at SS, the fund is still projected to exhaust in 2033, but estimated benefit payouts from program income (FICA taxes mostly) have increased to 79% of liabilities from 77%.
In this video, we were only referencing the SS trust fund, not the combination of SS and DI. Part of the reason the disability fund longevity expectations increased this year is because they reduced the assumption of the number of people taking disability in the future. They also increased projections for labor productivity based on 2023 economic growth being a bit higher than projected in the previous year’s report. I assume the increase in funding from 77% to 79% is also due to increased assumptions for labor productivity over coming years. Again, thanks for watching and commenting!
I had initially planned to retire at 62, work part-time, and save money, but the impact of high prices on various goods and services has significantly disrupted my retirement plan. I'm worried about whether those who experienced the 2008 financial crisis had it easier than I currently am. The volatility of the stock market is a concern as my income has decreased, and I fear that I won't be able to contribute as much as before, potentially jeopardizing my retirement savings.
Most likely scenario is some combo of:
1. Raise cap on annual earnings that can be taxed for FICA (currently $168k adjusted annually).
2. Raise level of taxation on those earnings between the current threshold & new threshold.
3. Have company contribution to FICA at more than 50%.
4. Reduce further the benefit level for those taking at 62.
5. Reduce the upper end of the benefit offered.
They’ll likely package this with some tax cuts in other areas to make it palatable, such as:
- Higher exemption level on Estate Tax
- Higher exemption level on Real Estate transaction tax when selling a home
- Raise the income levels and contribution amounts eligible for Roth IRA.
We 100% should get something done in the next Congress since either POTUS will be in their lame duck term (which means it probably won’t happen).
100% paid by employee. Benefits are always in lieu of pay. If you work, you EARN your benefits by your work.
Get rid of the wage cap, and you help fix the issue. There's no reason someone making 400k shouldn't be paying into SS on 400k.
I understand why we have surviving spouse benefits, but they’re also a drain on the fund. We’ll have to increase social security contributions to keep it going, and soon. What would an increase of 1-2% do to the fund? What amount is needed to keep it funded to 100%? I’m all in favor of a tiered system of increasing SS contributions and removing the cap altogether. Increasing immigration would help a whole lot too.
Reducing benefits based on a means test is also wise.
Great video.
Thanks Troy for this straight forward presentation. If I were “King for a day” I would require that all voters and politicians view this video. Additionally, I would require anyone running for Congress or the Presidency to present their proposed solution prior to Election Day. Now, back to the real world……..😏
The video title actually says - "Strategies to Safeguard Your Retirement". Went through the entire video but nowhere does it state anything about how to safeguard retirement.
Hi Chitra, thank you for pointing this out - we've adjusted our title to better reflect the content of the video. Thank you for taking the time to watch our channel and for being part of our community!
Maybe some politicians can hire some smart mathematics. All the politicians just kick the can down the road ! So the nect president or one after is going to be the "Bad" guy . Why the extra complexity of taxing something you just gave someone , just give less to start with .
Raise the FICA cap and SS shortfall is solved. It’s a no brainer. Also cut out the massive amount of welfare cheats.
Not the best review of options. Clearly payroll taxes will go up and it will help, and high earners will pay more. Benefits will go down indirectly by age adjustments, and means testing.
There are also ways to decrease all the secondary beneficiaries like children and spouses.
Honestly at the current time some people, us included can get very high amounts of Social Security, yes we “earned it” but we also don’t need as much as we are getting.
Why do you decide to give misinformation? There isn't any motivation to make simple adjustments to the funding. It is VERY unlikely no changes would happen in the next 9 years to allow fully funding benefits.
Social security is a third rail for a reason. Voters love it and would vote out anyone putting there benefits at risk.
Inform, don't politicize, or clickbait, please
Nothing he said was misinformation. You just don't want to hear the truth and don't want to face the reality of who is putting those benefits at risk. If they don't fix it - and they've been sticking their heads in the sand for decades now, refusing to address the problem - then whether you like it or not, the benefits will be cut. Voters can't wish more money into the Trust Fund than there is, and when the FICA taxes are only enough to fund 77% of the benefits promised, then benefits will be slashed by 23%. Thank your cowardly politicians!