Is Social Security really going broke? The short answer is yes. Before you go tell all of your friends I told you, so. I recommend you stick around because although Social Security is going broke, it will never be broke.
Possible solutions that can be taken to make Social Security is financially sustainable for the foreseeable future.
1- Raise the amount of taxes employees and employers are contributing into the program
2- Move full retirement age from between age 66 and 67 to age 70
3- Make all W2 earnings subject to the Social Security tax
4- Change the program into a welfare program
5- Decrease the delayed retirement credits
6- Delay eligibility from 62 to 64
7- Reduce the family benefits
8- Reduce annual COLA increases
I don’t know which of the changes I’ve talked about today, the government will choose to implement to solve the financial issues Social Security will have in the future, but they will choose one of them or a combination of them not because they want to, but because they have to in order to stabilize the program.
Hopefully now you have a better understanding of my comment from the start of the show where I said, “Social Security is going broke, but it would never be broke”. It’s my belief that Social security will continue to be a critical part of a well planned out retirement and that we can count on it to be there for decades to come.