Is Social Security Actually Secure? - Adviser Investments

Is Social Security Actually Secure?

A recent study found that seven out of 10 Americans fear they will not receive the full Social Security benefits they’re entitled to. These concerns are far from outlandish. Last year, the Social Security and Medicare Board of Trustees reported that the Social Security trust fund can continue to pay out through 2034. After that, the fund will be partially depleted and only able to pay three-quarters of scheduled payments.

To address the situation, Congress is debating something called the Social Security 2100 Act.

If passed, the bill will extend the solvency of the program by four years by applying payroll taxes on wages up to $400,000 a year, compared to $147,000 today. The bill would also modify how cost-of-living adjustments are calculated for Americans over the age of 62. Other provisions include ending the five-month waiting period for disability benefits and adding a minimum Social Security benefit for low-income earners.

This wouldn’t be a permanent solution to Social Security’s solvency—and it’s not a done deal. But it would buy lawmakers time to implement lasting changes to the program rather than slap another Band-Aid on the problem. A similar bill was floated in 2019 that proposed increasing the Social Security tax on earnings above $400,000 and then increasing it by 1% a year over a 24-year period. Had the bill passed, this alone would have solved the insolvency problem.

The key takeaway is that there’s zero reason to panic. Lawmakers understand changes need to happen, and there’s ample time for them to iron out a solution. If you’re still worried, call your Adviser wealth management team today so we can run through the numbers with you and make any necessary changes to your financial plan.

About Adviser Investments

Adviser is a full-service wealth management firm, offering investment managementfinancial and tax planningmanaged individual bond portfolios, and 401(k) advisory services. We’ve been helping individuals, trusts, institutions and foundations since 1994. Adviser Investments and its subsidiaries have over 5,000 clients across the country and over $8 billion in assets under management. Our portfolios encompass actively managed funds, ETFs, socially responsible investments and tactical asset allocation strategies, and we’re experts on Fidelity and Vanguard mutual funds. We take pride in being The Adviser You Can Talk To. To see a full list of our awards and recognitions, click here, and for more information, please visit or call 800-492-6868.

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