The Big Social Security Disconnect In Americans' Retirement Plans

No wonder Americans are so worried about retirement. A new survey shows 80% of them are planning to rely on Social Security benefits “substantially” or “somewhat” in retirement (or already do so). But only 42% are “very” or “somewhat” confident in the program’s future.

Compounding this uncertainty: widespread confusion about what the looming exhaustion of the Social Security Trust funds really means. According to the Social Security Trustees’ most recent projections issued last month, the combined trust funds (those paying for both old age and disability benefits) will be exhausted in 2034, at which point Social Security taxes coming into the Treasury will be enough to pay only 79% of promised benefits. Yet 19% of those surveyed thought Social Security would be unable to pay any benefits at all after trust fund exhaustion and 54% admitted they had no idea what the impact would be. Just 26% knew that the program would be able to pay some, but not all, benefits.

Continue reading source article here.

Damian Sylvia

Retirement Income Solutions

220 Monmouth Road

Oakhurst, NJ 07755