In a press release issued today, Social Security buried the lead. The press release touts that Social Security has extended its projected lifespan by one year. Now the trust fund won’t be deleted until 2035 instead of 2034.
Whoopie! That’s just about the time I’ll retire and Social Security says they’ll only be able to pay about 80% of the expected benefits at that time.
But the bigger news that’s buried in their press release is this: In 2020, that’s next year, Social Security will officially begin spending more than it is taking in. In 2020, the ship starts sinking. And, it’s expected to keep sinking for 75 years!
This is why tax planning is so important today. At some point the government has to raise taxes in order to pay Social Security benefits, and if you don’t protect yourself starting now, you are going to be in the middle of the tracks when the tax train comes roaring through!
Here’s the link to the Social Security press release if you’d like to read it yourself.