Monthly Archives: October 2023

Oct 28 2023

The Future of Social Security

In the annual Trustees Report, projections are made under three alternative sets of economic, demographic, and programmatic assumptions. Under one of these sets (labeled “Low Cost”) in the 2023 Trustees Report, the combined trust funds would be temporarily depleted before returning to positive levels by the end of the 75 year projection period. Under the other two sets (the “Intermediate” and “High Cost”) in the 2023 Trustees Report, the combined trust fund reserves become depleted within the next 15 years. The intermediate assumptions reflect the Trustees’ best estimate of future experience.

Some benefits could be paid even if the trust fund reserves are depleted. For example, under the intermediate assumptions, annual income to the trust funds is projected to equal about eighty percent of program cost once the trust fund reserves become depleted. If no legislation has been enacted to restore long-term solvency by that time, about three-quarters of scheduled benefits could be paid in each year thereafter.

The Trustees believe that extensive public discussion and analysis of the long-range financing problems of the Social Security program are essential in developing broad support for changes to restore the long-range balance of the program.

For more information, go to: ssa.gov/OACT/ProgData/fundFAQ.html

Teaching Suggestions:

  • Ask students if the Social Security and Medicare programs will continue to face significant financing issues.  How can these issues be addressed now to mitigate future problems?
  • Under current law, how are the Social Security and Medicare programs financed?
  • Research project: Ask students to research how large are the assets reserves currently in the trust funds.

Discussion Questions:

  1. What are the annual income and costs for the Social Security trust funds?
  2. Currently, do the Social Security trust funds have an annual surplus or deficit?
  3. How does 2023 outlook for Social Security compare to last year’s outlook?
Oct 14 2023

Planning for Retirement

Do you have a retirement plan? It is never too early or too late to plan for your future. Even if you don’t have a plan in place, taking small steps now can make a big difference for your future retirement. Benefits.gov can help you plan and find retirement benefits. This article will share tips for savings and benefits that may be able to help you through retirement.

What should I do first?

Start saving money. If your employer offers a retirement savings plan, like a 401(k), sign up and contribute what you can. If your employer does not offer a retirement plan, you can put money in an Individual Retirement Arrangement (IRA).

What are Social Security retirement benefits?

The U.S. Social Security Administration (SSA) manages Social Security retirement benefits. The monthly payments are based on how much you earned when you worked. Social Security payments can help in retirement, but it may not be enough to cover all your expenses. SSA’s retirement estimator tool can estimate how much you will get in benefits at different ages.

Am I eligible for Social Security retirement benefits?

When you work and pay Social Security taxes, you earn credits for Social Security benefits. The number of credits you need to get retirement benefits is based on when you were born. If you were born in 1929 or later, you need 40 credits. Usually, this is 10 years of work. If you never worked, you may be able to get spouse’s retirement benefits if you are at least 62 and your spouse gets retirement or disability benefits.

When should I retire?

Choosing when to retire is up to you and will depend on your financial situation. You will receive less in your Social Security benefits if you retire before full retirement age. Find your full retirement age in the retirement age chart.

Are other benefits available?

Supplemental Security Income (SSI) helps people with little or no income and who are 65 or older, blind, or have a disability. SSI benefits are paid monthly. The amount you get is based on your income, living arrangements, and other factors

You may be eligible for benefits from the Federal Employees Retirement System (FERS) if you are a federal employee.

To find out more about retirement benefits you may be eligible for check out the Benefit Finder.

For more information, go to:  Planning for Retirement | Benefits.gov

Teaching Suggestions:

  • Ask students to debate the issue–“It is never too early or too late to plan for your future”.
  • Ask students to outline steps they can take now to secure their retirement?
  • Should you take Social Security benefits before your full retirement? Why or why not?

Discussion Questions:

  1. How can taking small steps now make a big difference for your future retirement?
  2. What steps can you take to save your retirement if your employer does not offer a retirement plan?
  3. Who is eligible for Social Security benefits?