The dust is far from settled on our nation’s recent stimulus packages. And, there’s talk of more coming. I have had questions about how this may affect your future Social Security benefits. Will I have benefits? Do I file now if I can? Do I wait?
First, I would like to know your gut feeling, your emotional reaction, your instinctive response to this question. Based on everything you have seen happen in our country for the last several months, do you believe our government will require more revenue in the future? Yes? No?
With all the economic changes that are happening in our country at breakneck speed, the website www.usdebtclock.org has become indispensable.
Using the debt clock information to compare the year 2020 to the year 2024 allows us to use the government’s own information to determine unequivocally that they will require enormous amounts of revenue in the future.
The 2020 debt clock shows that the current debt for our country is $25 trillion. It has risen from $22 trillion just one year ago. The 2024 debt clock shows our country’s debt increasing to $43.6 trillion. Approximately $20 TRILLION MORE in just four years.
The total U.S. unfunded liabilities (future obligations exceed funds) in 2020 are $148 trillion. The total unfunded liability increases in just four years to $187.8 trillion.
There is much more detail on our overall debt (ask me), but I’ll skip to Social Security and Medicare. In 2020, the unfunded liability for Social Security is $20.5 trillion and $31.7 trillion for Medicare. You won’t believe this – in 2024 the unfunded liability for Social Security rises to $24.7 trillion and Medicare increases to $39.1 trillion.
I know it can be extremely hard to understand these numbers or fathom the enormity of their size. There are future consequences to these recent stimulus decisions (and years of other financial decisions).
Will all of this affect my Social Security?
For those younger than 45 it’s hard to imagine there will not be major revisions to Social Security as we know it. Either filing ages will be extended from the current 62-70 to maybe 67-75, or benefit amounts reduced, or more is collected in payroll taxes. Or a combination of all three.
For those within 5-7 years of filing I don’t see any changes coming. Unless this recent crisis leaves no other options, I would probably not recommend filing earlier than planned. (If you are planning to file earlier than you expected, let’s talk first.)
Nor do I see any changes coming for those already receiving benefits.
Call me to get additional details on these statistics and/or for more information about your Social Security.
