Thursday, February 2, 2017

Is Social Security Going Broke?

Hey “baby boomers” and “gen X’ers”, that ought to get your attention.  Be honest, it is something we have all thought about.  Those of us “lucky” enough to be born before 1953 are already receiving or are about to receive those life-saving monthly checks from Uncle Sam.  Is the future potentially worrisome?

The short answer is NO!  As it stands here in early 2017 the Social Security trust funds are “in the black”, and the retirement trust fund will remain so for at least the next 20 years.  (The disability fund is solvent for only about five years.) But what about after that?  All of the trust funds are poised to go into the red unless some important measures are in place to restore their solvency.  They won’t go broke, but they will become unable to pay full benefits for about 20 to 25 years.  This is due to the fact that some unforeseeable demographic changes have occurred since Social Security was first created. Women are now more prevalent in the workforce, people are living longer, and the Great Recession of nearly a decade ago reduced the payroll tax contributions to Social Security.

We’ll talk more about this at a later time because it impacts us all…young and old alike.  If you need thoughtful advice about social security, wills, trusts, probate, and other family financial matters here is a great place to turn.  Visit www.lmclarkattorney.com.  Please give Attorney Lyle Clark a call and arrange for a free consultation in his Bellevue WA office at (425) 452-3092.

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