Social Security

June 17, 2015

As we have all heard, there is the risk of Social Security running dry at some point in the future. It has been predicted that the fund that holds Social Security benefits for workers with disabilities could be depleted by 2017, with retirement benefits following in 2036. So you are probably wondering, is this true? How would this happen? Here are a few major causes of this problem:

Increased Life Expectancy
People are living longer than they used to, this means they require more money to live off than was paid into the system during their retirement.

Rising Health Costs
With older age, comes more medical treatment and the price is going up in the United States. The Kaiser Family Foundation in 2014 found that the average annual premium for a family increased to $16,351 last year, a 4 percent rise over the previous year.

Mistakes in Payouts
There are bound to be errors that arise with an agency as large as the Social Security Administration.

So what is going to happen? When the fund runs out, retired workers will still get some of their benefits, the majority of them in fact, just not the full payout current retirees enjoy. has said that Social Security payments need to be reduced by 23 percent when the trust runs dry and that the plan is that these benefits will be funded by payroll taxes.

Here are some tips to help you with your retirement so you are not relying strictly on your Social Security Benefits:
• Start Saving Early for your retirement
• Don’t give in to lifestyle inflation
• Delay your benefits.
• Max out your 401(k) and IRA every year

Simply put, Social Security is a tax and is not meant to replace your income in retirement. You want to take advantage of the accounts and opportunities available to you and plan ahead to have a fulfilling retirement.

If you are interested in a Social Security Analysis or to attend one of our Social Security luncheons, please contact our office at 763-231-9510.
The strategies mentioned may not be suitable for all investors. Please consult with a financial professional before taking any action

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