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How to Prepare for a Future Without Social Security

June 7, 2019

From the U.S. News & World Report website

It’s no secret that the country’s Social Security program is running out of money. In fact, the combined reserves of the Old-Age and Survivors Insurance and Disability Insurance Trust Funds are expected to be depleted by 2035, according to the 2019 Social Security Board of Trustees report to Congress.

That may seem dire, but it’s actually an improvement from last year’s report, which indicated that the trust funds were expected to run out by 2034. In fact, the asset reserves for Social Security actually increased $3 billion in 2018

“It changes every year,” says Chad Parks, founder and CEO of the 401(k) provider Ubiquity Retirement + Savings. The difference between the 2018 and 2019 predictions can be partly attributed to lower disability claims and increased recent mortality, according to a May 2019 analysis from the Center for Retirement Research at Boston College. Even if the trust funds do run out in 2035, Social Security is expected to receive enough money from payroll taxes to pay out 80% of its claims.

Still, the prospect of the trust funds being exhausted by 2035 is unsettling. Use these saving and investing strategies to prepare for a future without Social Security:

From → Benefits

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