April 23rd we get the new numbers on the funding status on the Social Security Trust Fund.
As we have reported, the “sky is not falling.” This article predicts rosier news from Trustees on the funding status. The media has confused a lot of people into thinking taking benefits as early as possible is smart. The system will need to implement changes over time, but people over 55 years of age are likely to not be impacted.
Here is a quote from the article below regarding a new educational campaign to broaden education in this area, “The Campaign says the trustee report will also help put to rest the “misunderstanding” that Social Security has entered a cash deficit situation where it is paying out more in benefits than collecting in income. “Social Security is prohibited by law from doing that. It can only pay benefits if it has sufficient income to cover all costs. If there were less income than outgo this year, the Trustees would be reporting that benefits would not be able to be paid in full during the remainder of 2012!,” the Campaign says.”
Every speech or interview I give on Social Security the topic of “funding status” or that Social Security is going bust comes up. I will be relieved to have more people and data to help you feel confident that your Social Security is not going away. The bottom line is that you should figure out how to maximize your benefits to get the most money out of the system.
Social Security Trustees Will Report Large, Growing Surplus: Advocacy Group