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  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • Social Security is a beloved entitlement program. It is doubtful that it will ever go away. However, the program was NEVER designed to be able to pay benefits over long periods of time.

    However, the huge numbers of baby boomers who are beginning to collect Social Security and the very long expected life spans of these boomers is going to put tremendous pressure on this system. Without changes, both Social Security AND Medicare will be bankrupt in the foreseeable future (actual estimates vary).

    The good news for most people around retirement age now is that it is unlikely that your benefits will ever change -- especially if Congress enacts measures to save the long term solvency of these programs. The current worst case appears to be that without changes Social Security would only be able to pay 75 percent of program benefits after 2033.

    Proposals for improving the financial health of the Social Security program include raising payroll taxes, increasing the retirement age at which beneficiaries can claim full benefits and reducing the level of the annual Cost of Living Adjustment (COLA). However, it is important to note that the age and COLA changes would not impact most of today’s retirees.

  • Login to rate this answer:   Answered on 7/12/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.