from the Desk of Brian Bickett, CFP®
Annual Social Security Trustee Report is out…
The Social Security Trustee report released on Monday includes updated estimates for the expected funding for both the Social Security Retirement Benefits and Disability programs based on the financial performance from 2018.
The Disability Income program’s funding expectation where drastically increased due to the continuation of the decreasing number of applications since 2010 and the decreasing number of disabled-worker beneficiaries receiving payments since 2014. While the trends look good for the Disability Income program’s funding, I do not know the underlying reason for the decline in applications and decrease in participants. Some more research is needed to determine if this truly good news for those who do need the program.
Some interesting highlights from separating the OASI side of the ledger for 2018 include:
- An estimated 176 million people had earnings covered by Social Security and paid payroll taxes which contributed to the total income of $831 billion including the interest from the OASI trust fund and taxation of benefits.
- An estimated 53 million retired workers and survivors received retirement benefits at a total cost of $853.5 billion including $844.9 billion in benefits paid, $3.8 billion in administrative costs and $4.8 billion to the Railroad Retirement financial interchange.
- While the OASI trust fund reserves where at $2,820.3 billion at the start of 2018, they ended at $2,797.9 billion for a net loss of $22.4 billion – the beginning of an accelerating trend.
- The expected depletion of the OASI trust fund in 2034 remains unchanged from the previous year’s estimates.
- If placed into effect immediately, an increase in payroll taxes by 2.70%, a decrease in future benefits by 20%, or some combination of the two would resolve the expected OASI funding shortfall for the next 75 years.
- If not placed into effect until 2035, it would take an increase in payroll taxes by 3.65%, a decrease in future benefits by 23% or some combination to resolve the expected shortfall.
The trustee’s were very clear to point out what every one of us intuitively knows – the sooner you address a problem, the smaller the size of the change needed.
Enjoy the ride of YOUR life!
Find Your Financial Roadmap.
Brian can help you develop a roadmap to get you from where you are to where you want to go — and then put it in action, making your money work for you to avoid behavioral mistakes.
The 2019 Social Security Trustees report was released on Monday and covers long term financial estimates for both the Old Age and Survivors Income (OASI – commonly referred to as Retirement Benefits) along with the Disability Income (DI) programs.
Diving further into the recently released Social Security Trustees Report…
Additional Articles You May Find Interesting
Summary of the 2019 Social Security Trustees' Report Article written by Brian Bickett Earlier than in the past, the Social Security Board of Trustees released their annual report at the end of April this year. The report for 2018 spans 270 pages that go...read more
Article written by Brian Bickett Do I have enough life insurance? It’s a simple question with a simple answer. However getting from the question to the answer requires a bit of exploration. And that exploration always begins with “Can you tell me why...read more
Why Get Financial Advice from This Motorcycle Rider? Article written by Brian Bickett Earlier in my career, I worked as a fee-based financial advisor. This meant that I got paid to give advice AND got paid commissions for suggesting my clients buy certain...read more
Start your journey to financial freedom and peace of mind today.
CONNECT WITH US
Iron Mountain Financial Planning LLC (“IMFP”) is a registered investment adviser offering advisory services in the States of South Dakota and Wyoming and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. The presence of this website on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by IMFP in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of IMFP, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.