Social security provides substantial income to millions of Americans. In fiscal year 2019, the Social Security Administration estimated that it would pay out $892 billion in “Old Age and Survivorship Insurance” benefits. Even for those with significant assets and other income, a regular monthly social security payment is welcome. In 2019, the average monthly social security payment was $1,461, or $17,532 annually.
There have been reports for years that the social security program is broken, or broke, or about to be broken. The good news is it is not broken or broke. CNBC wrote a report, Social Security trust funds could run out even faster due to the coronavirus pandemic, which predicts that trust funds will last until between 2032 and 2036. The Covid-19 pandemic has reduced payments into the Social Security funds which has brought the dates forward from earlier estimates.
There is no destruct button in 2032-2036. It is just that there will be no reserves so those benefit payments would have to be covered by incoming social security taxes or by other sources to be determined by Congress and the President. It has been estimated in the article above that the current payments into the funds would cover about 79% of the estimated payments flowing out.
Another source of funds to those in this age group that is not widely understood is the sale of personal life insurance. The sale of a policy will remove the need for sometimes quite large monthly or annual premium payments and will create an immediate payment to the seller. All types of policies can be sold and this approach is best suited for those 75 and older but those with significant health impairments may qualify at younger ages. Please email us at email@example.com or complete the information below and we will be in touch with you to see how we can help you.