• Skip to main content
  • Skip to header right navigation
  • Skip to site footer
Bautis Financial

Bautis Financial

Secure your Castle, Achieve your Dreams.

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Social Security Gets An Annual Checkup

July 28, 2013 by Bautis Financial
Social Security Gets an Annual Checkup

The 2012 Social Security yearly report has been released. Let's go over these eagerly anticipated numbers.

Every year, the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds — aka Social Security — gets a checkup on who is receiving Social Security benefits and projections on how long it can continue making those payments. The arrival of the report may not have the same anticipation of the winning Powerball numbers… but with all of the recent talk about Social Security running out of funds, the release of the report is eagerly anticipated.

The report was made public on May 31st for the 2012 year. It confirms that:

  • Social Security payments are currently being made to 57 million people: 40 million retired workers, 6 million survivors of deceased workers, 11 million disabled workers
  • 161 million people are currently paying taxes into the social security system.
  • The Social Security system paid out $786 billion in 2012 benefits.

The report also states that the system now pays out more in benefits than it receives from the combination of FICA taxes and interest on its investments. It is projected that the fund will be exhausted in 2033 and it will only be able to pay 77% of scheduled benefits after that happens. That would mean starting in 2033, if you were expected to receive $2,000/month in Social Security benefits, the fund will only be able to allocate $1,540/month.

There are many ways to fund the shortfall, including increasing the full retirement age, increasing the FICA wage base, increasing the Social Security tax rate or reducing the cost of giving annual increases in Social Security benefits (COLAs). To read more about these resolves, read this article from MSN Money.

Unfortunately, to address the issue, we are dependent on political leaders to take action. Since the fund is not scheduled to be exhausted until 2033, we will probably have to wait 19+ years for politicians to take any action.

Category: Finance News, Social Security and MedicareTag: Money News, Social Security, Social Security Benefits
Previous Post: « Retirement Income With Fixed Indexed Annuities
Next Post: What Is More Feared Than Death? »

Sidebar

Featured Articles

bautisfinancial risk number

Recent Posts

Dog Walking Side Hustle

44% of Americans Report Having a Side Hustle Amid Inflation

March 28, 2023 By Bautis Financial

Stock Market Recap

Market Recap Week of 3/20/2023 Through 3/24/2023

March 27, 2023 By Bautis Financial

How to Teach Your Children to Invest Like a Honeybee With Henry Svec

Episode 148 – How to Teach Your Children to Invest Like a Honeybee With Henry Svec

March 24, 2023 By Bautis Financial

Fed Hikes Rates by a Quarter Point and Indicates Increases May Be Nearing an End

Fed Hikes Rates by a Quarter Point and Indicates Increases May Be Nearing an End

March 23, 2023 By Bautis Financial

5 Questions to Ask Yourself 5 Years Before You Retire

5 Questions to Ask Yourself 5 Years Before You Retire

March 21, 2023 By Bautis Financial

Blog Categories

  • Budgeting/Saving (36)
  • Business (53)
  • Clear A Path Podcast (6)
  • Client Resources (4)
  • College Planning Learning Center (2)
  • College Planning Podcast Series (3)
  • Daily Flash Briefing (1)
  • Education (33)
  • Estate Planning (16)
  • Finance News (586)
  • Insurance (27)
  • Investments (248)
  • Learning Center (25)
  • Lifestyle (52)
  • Miscellaneous (50)
  • Personal Finance (160)
  • Politics (21)
  • Real Estate (48)
  • Retirement Planning (104)
  • Social Security and Medicare (28)
  • Taxes (49)
  • The Agent of Wealth Podcast (147)
  • Uncategorized (109)
  • Videos (154)
  • Wealth Management (72)

Subscribe to Our Insights

Sign up to receive valuable financial insight and updates straight to your inbox each week.

Social

Follow along on social media

Contact

Bautis Financial
7 North Mountain Ave
Montclair, NJ 07042
Get directions
862-205-5800
Contact

Navigation

  • Schedule a Call
  • Podcasts
    • Agent of Wealth
    • Clear a Path
  • About
    • Our Approach
    • Our Team
    • Our Difference
  • Who We Work With
    • Individuals and Families
    • Small Business Owners
    • Retirees and Pre-Retirees
    • 401k Plan Sponsors
  • Insights
    • Blog
    • Business Valuation Advisor
    • College Planning Hub
    • Discover How
    • Learning Center
    • Risk Score
  • Client Access
    • Wealth Center
    • Orion

Copyright © 2023 · Bautis Financial · All Rights Reserved · Powered by Mai Theme

Return to top