It’s healthy to be skeptical in a world of uncertainties. Major news networks sometimes broadcast conflicting facts that require a bit of research to verify. There’s even a day in October dedicated to skeptics. So, this is the perfect time to tell all the skeptics that there’s no reason to think Social Security won’t be here for you well into the future.
Recently, the Social Security Board of Trustees released its 76th annual report to Congress presenting the financial status of the Social Security trust funds for the short term and over the next 75 years. We’re pleased that legislation signed into law by President Obama last November averted a near-term shortfall in the Disability Insurance (DI) trust fund that was detailed in a previous report.
With that small, temporary reallocation of the Social Security contribution rate, the DI fund will now be able to pay full benefits until 2023, and the retirement fund will be adequate into 2035. It is important that members of Congress act well before 2023 in order to strengthen the finances of the program. As a whole, Social Security is fully funded until 2034, and after that it is about three-quarters financed.
Many people wonder if Social Security will be there for them. Here’s a fact that will relieve any skepticism you might have: the increased cost of providing Social Security benefits for Baby Boomers is less than the nation’s increase in spending was for public education when the baby boomers were children.
Put your skepticism aside and rest assured that Social Security is with you today and will be with you tomorrow. You can read the entire report at www.socialsecurity.gov/OACT/TR/2016.