This year’s Social Security Trustees report was not as scary as many might have expected, with the estimate for depletion of the trust funds moved up just one year, from 2035 to 2034 for the combined Old Age Survivors and Disability (OASDI) trust funds and from 2034 to 2033 for the OASI fund (excluding disability). However, there are a few reasons to prepare for more dramatic changes. In this Retirement Daily article, Preparing for the Uncertain Future of the Social Security System, Covisum® Founder and President, Joe Elsasser, CFP® outlines what you need to know about the most recent report.
"Ultimately, some combination of changes will be necessary, and we should expect that as the trust fund exhaustion date approaches, calls for reform will increase. Reforms are unlikely to impact every individual equally. As you evaluate your retirement income plans, be sure to consider how changes or cuts might impact your plan specifically and consider contingency plans. Don’t make poor a Social Security claiming decision based out of fear. Testing your retirement strategy to make sure you’ll still be able to reach your goals even if the cuts to Social Security are more dramatic than the latest Trustees report suggests is key."
Read the Retirement Daily article in its entirety here.