The Future of Social Security

The most recent Social Security Trustees Report projects that – without changes – the current system will only be able to pay about ¾ of promised Social Security benefits to retirees in about 20 years. So, if I were scheduled to receive $2,000 per month, that would be reduced to about $1,500. Now, that is a substantial reduction, but we believe – and we think history agrees – that legislators will likely make tweaks to the system to keep it intact.

What kinds of changes are likely?

An increase in Full Retirement Age for younger workers.

Full Retirement Age is the point at which a retiree can receive 100% of benefits, and that is currently between 66 and 67 years old. Perhaps this will increase to 68, 69, even 70?

An increase in the amount of annual wages subject to Social Security tax.

In 2015, the first $118,500 of a worker’s wages is subject to this tax. It could very well be increased creating more revenue for the govt. As an example, there’s currently no cap on wages subject to Medicare tax.

An increase in the Social Security tax rate.

Workers and employers each currently pay 6.2%, but some have proposed raising this rate.

A change in Social Security Bend Points

Social Security bend points could change causing high-income earners’ benefits to be an even smaller percentage of their pre-retirement earnings.

Many other possibilities exist. The bottom line is, in our opinion, it is not logical that Social Security will disappear. Instead, fixes will likely be made over time. The questions are which fixes and when?

For more helpful information, visit our website at Thanks for watching!


Published: January 30, 2015

Authored by: Josh Wichman, MBA

Direct Phone: 812-602-6319


Share your thoughts by tweeting to @PayneWealth or follow us for more useful information!

The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

Contact Our Offices

Payne Wealth Partners, Inc.
Keystone Financial Consulting
601 N Cross Pointe Blvd
Evansville, IN 47715
Phone: 812-477-6221
Toll Free: 888-477-6221
  • YouTube
  • Follow us on twitter
  • Follow us on facebook
  • Follow us on linkedin
  • GooglePlus

FREE Financial Planning Guides and other exclusive content!

Get instant access to download all our current - and future - informational whitepapers and guides plus join our mailing list to receive the latest Payne Wealth blog posts. 

SUCCESS! Please check your e-mail inbox for your access link and password.