Jul 29, 2020
During the last couple of weeks, the current status of the Social Security Trust Fund seemed to be a concern for lots of people. So we dedicated this week’s episode to reviewing social security. Throughout the episode, Grant speaks in-depth about how the Social Security system works, how COVID-19 is affecting the Social Security trust fund, and what kind of planning we can do. Stay tuned until the end of the episode, where Grant talks about some of the options you have if you’re genuinely concerned about your Social Security benefits.
[01:21] How Social Security Works – A quick review of the Social Security system, its benefits, and how it integrates with payroll and tax mechanisms.
[05:45] Calculations – Grant explains how Social Security benefits are calculated when you enter retirement.
[09:40] The Social Security trust fund – Investment, auditing, and forecasting procedures of the social security trust fund.
[12:49] Current Status of the Fund – Grant reviews the current status of the Social Security trust fund based on the latest forecast.
[16:07] The Impact of COVID-19 – How COVID-19 may affect the strength of the Social Security trust fund.
[22:11] Changes to the System – Grant dives into some of the possible changes to the Social Security system that allows it to adapt according to the current economic conditions.
[30:05] Changing Investment Methods – Social security trust is allowed to invest only in US government bonds. Grant reviews the possibility of changing these rules and putting Social Security funds in other types of investments.
Resources:
What is Social Security? - www.ssa.gov/people/materials/pdfs/EN-05-10230.pdf
Understanding Social Security Benefits - www.ssa.gov/pubs/EN-05-10024.pdf
Social Security Trustee Report: - https://www.ssa.gov/OACT/TRSUM/index.html#:~:text=In%202019%2C%20Social%20Security's%20reserves,2034%2C%20unchanged%20from%20last%20year.