Here's When Social Security Runs Out of Money
23,056
Published 2024-05-16
Here are the details and how to plan.
Social Security Report: www.ssa.gov/OACT/TR/2024/tr2024.pdf
SSA Press Release: www.ssa.gov/news/press/releases/2024/#5-2024-1
Social Security Primer: crsreports.congress.gov/product/pdf/R/R42035
Open Social Security: opensocialsecurity.com/
New Retirement: go.robberger.com/new-retirement/yt-ss
Timestamps
0:00 - SS press release
1:55 - The Report
4:45 - Could they take action
5:52 - What could they do to fix it
8:09 - Open Social Security
9:46 - New Retirement
12:33 - Financial Freedom
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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
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All Comments (21)
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Government Wasteful Spending is totally Out Of Control. God help us.
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Thank you for a great video.
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They need to re-elvaluate every single person on disability. I know many people who are not remotely disabled but receive it. Get these bums off it can keep it for the legit people that need it.
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Glad to see Rob investigate the new trust fund report. Last weekend I saw a couple news articles and a new-to-me YouTube channel that talked up the new 2035 estimate. It took me less than 20 minutes to locate and read the summary of the trustee report. They stated 2033 unchanged. I was looking forward to a trusted source such as Rob coming out with something on this recent misinformation.
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LOL...same year I reach FRA I ran scenarios in New Retirement based on a 25% cut to benefits.
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I'm turning 62 this month, if the report stays true, then waiting until I am 67 or 70 to get a higher benefit does not seem to make sense. Seems I should start sooner rather than later.
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Just remove the cap!
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Rob, I see this report on Social Security & the ONLY politicians talking about cutting are the Republicans. The President has already a fully funded Social Security plan for many many decades. It just raises the Taxes on the Corporations & people making $400,000 / year ( getting them to pay a Fair Share 15% ). To me & many others who worked all our lives to pay into SSA this plan makes more sense than ANY other plan I heard. Tax reform was talked about for years but NOTHING was ever done. I am retired & lucky enough to receive a small pension but Medicare & Social Security can be funded just by this small step. How about putting our elected Officials on Social Security & Medicare too ! Then they wouldn't be so quick to start talking about all those cuts they want to make !
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Great video Rob ! Love the use of AI to break down a 277 page report into consumable portions
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Thanks for the info Rob. Definitely not a feel good message but nonetheless, we have to plan for the cut time to write to your senator.!
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Typo in the video description which incorrectly states the year of OASI insolvency is 2023 not 2033 as stated in the report and Rob clarifies at the 5:41 mark.
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Do honestly think a spineless politician would let the program deduct what is owned especially since the elderly are the ones who consistently turn out to vote ?
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It's 79% payout only if cuts are made across the board. However, across the board cuts are virtually impossible since that would cause the lower end of the recipient spectrum that are literally living only on their SS checks to starve and become homeless. So if we adjust for that and assume that the lower end isn't going to see any cuts then the cuts in the middle and upper end have to mathematically be significantly more than 21% and the payout would probably be closer to 65%.
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Just another variable that shows how even great planners can not account for everything. Good to have a plan, better to have other options.
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Agree with running models to bracket potential impacts of SS cuts. Seems the approach described herein for New Retirement will result in higher estimated taxes, since it represents the received current (original) SS received then reduced by an expense. Probably not critical considering the other variables / guesses in play, but an aspect to be considered.
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So many Fed retirees, particularly in Congress, who were hired before 1984 are under the CSRS retirement system which does not pay social security and they did not have it deducted from their salaries. They did away with CSRS and replaced it with FERS, which does pay SS, mainly in order to get more Feds to contribute to SS. So now FERS recipients will take a hit on their SS, but no cuts to CSRS recipients? So the many Congressmen under CSRS won't be impacted by the SS situation so why should they care? Enough with CSRS recipients always being immune and getting all the breaks!
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Is it out of line to state that any person in the US, under the age of 45, will not see one penny of social security in their "retirement"?
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Thanks for the video. I received my first SS payment just 4 days ago. My retirement planning did not include SS so the funds are a nice addition to my retirement income. I can't control how the fund will pay out so I don't or will not rely on it for any needed income.
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Pay in 100%, get out 79%. Sounds like a bait and switch, uniquely American!
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great video Rob, thanks again. I wonder if all that is required to fix SS is to adjust the indexing method back to price adjustment vs. wage adjustment? Given the NAWI index has increased more than the CPI-W for decades now, it would seem an easy fix to adjust the indexing of one's earnings to CPI-W or even CPI-U. Of course, after year of eligibility (62), SS recipients get a CPI-W-adjusted annual COLA. From age 60 backwards, earnings are adjusted by the NAWI. I'm suggesting we adjust these earnings using the annual COLA. Thoughts?
