Sep 16, 2020
The Social Security system has been under stress for years, and lost tax receipts due to COVID-19 hasn’t helped the viability of the program. President Trump recently issued an executive order that allows employers to defer Social Security taxes from the paychecks of their employees for the rest of 2020. In today’s episode, Grant talks about how the Social Security system works and how this executive order may affect the viability of the Social Security trust fund. Stay tuned until the end of the episode, where we talk about what you should consider when deciding whether to defer your Social Security tax.
[01:32] Skepticism About Social Security - How Social Security is set up, why it’s under stress, and what causes the skepticism about the Social Security program.
[07:33] Viability Forecast – Grant reviews the process of assessing the viability of the Social Security trust fund and what the latest forecast tells us about the current status of the fund.
[10:10] Impact of COVID – Grant shares his take on how the pandemic affected the viability of the Social Security system.
[17:30] President Trump’s Executive Order - How the provisions in the recent executive order work, what it means for employees, and the political aspect of this decision.
[22:15] Improving the Social Security System – Grant shares his take on some of the possible changes to the Social Security system that may improve its viability.
[31:15] Should You Defer Social Security Tax? – Grant shares some of the things you should consider when deciding whether to defer your Social Security tax.
Resources:
How It Works: President Trump’s Payroll Tax Deferral Executive
Order
gop-waysandmeans.house.gov/how-it-works-president-trumps-payroll-tax-deferral-executive-order/
Episode #35: What Does COVID-19 Mean for Social Security?
growmoneybusiness.com/podcast/x9ykf9576e352jd