A recent analysis by the Social Security administration estimates that the Social Security Trust Fund will become insolvent, which in plain terms means that there won’t be enough money in the fund to pay all of the benefits to participants in the program, in 2037. Prior to that, the Social Security Administration showed the Trust Fund becoming insolvent in 2041. Experts say that the current economic downturn is to blame for the accelerated insolvency date. Many financial professionals believe that politicians will do whatever it takes to keep Social Security solvent, including raising taxes, diverting government funds from other programs, or adjusting the program to reduce benefits to targeted groups, i.e raising the retirement age on those not in the Social Security program, or reducing benefits for participants above a certain income bracket.

No one knows for sure what will happen, but it’s always a smart idea to do some retirement income planning. Most folks will look to supplement their Social Security with private funds to sustain their standard of living. It’s a good idea to take a look at some alternative income sources such as fixed annuities to provide additional security to your retirement income.
 

Puritan Financial Companies is a diversified financial services firm specializing in helping people from their peak earning years through retirement to secure their financial future. Visit Puritan Life Insurance at www.puritanlife.com. The information contained in this blog post is for informational purposes only and should not be construed as legal, tax, or investment advice.