Is social security going to run out?

On Behalf of | Feb 29, 2024 | Special Needs, Disability And Long-term Care Planning |

The Social Security program was established to provide financial benefits, in part to those who have retired. The idea is that current workers pay into the system and retired workers are able to draw Social Security payments. When the current workers retire, they should be supported by the next generation of workers.

However, there have been some reports lately that Social Security is declining. In fact, a key component of it – the Old Age and Survivors Insurance Trust Fund may run out in less than 10 years. Does this mean that people should be concerned when considering how to preserve their own assets and planning for their financial future?

The Trust Fund will be depleted in 2033

Recent reports indicate that the OASI Trust Fund will probably be depleted by about 2033. Previously, experts thought that it would last until 2034, so this is problematic.

However, current Social Security payments are largely made out of both the main Social Security fund and the trust fund. It’s a combination of the two, so Social Security itself is not going to end in 2033.

That said, the total amount that people receive in their payments may decline. Once the trust fund runs out, the system may not be able to support the full value of the previous payments. Even if the Social Security system continues, you may end up drawing far less money than you expected when you get your payments.

Your financial future

It is important to keep an eye on this while planning for the future. Take the time to consider all of your financial options and the steps you can take to create the financial security you desire for your family.