Social Security: Will It Be There When I Need It?

If you’re nearing retirement, or recently retired depending on who you ask, when it comes to social security you might hear it’s never running out of money, or it is headed for insolvency.

According To The Non-Partisan Congressional Budget, 2010 Was That First Year That Social Security Paid Out More Than It Received, And Its Trust Fund ( Made Up Of Special-Issue Treasury Bonds) Will Be Exhausted By 2034. (However. Taxes Will Continue To Feed Into The System.)

social security benefits | Kittery, ME

Social Security and Being Prepared For Retirement

In a recent article David Certner, AARP’s legislative policy director says that Social Security trust funds are near an all-time high. As reported by AARP, the trust fund reserves are worth about $2.89 trillion. But as the birth rate has fallen and as more boomers retire, the ratio of workers to Social Security recipients is changing. This year is a tipping point: The program will need to dip into its reserves to pay full benefits from this point forward, absent any change to the program.

Even If The Trust Funds Are Exhausted, Social Security Won’t Be Bankrupt. The Program Will Continue To Pay Benefits, But At A Rate Of 79 Percent Of What Recipients Expected To Receive.

Social Security Benefits and Expected Payouts

Based on CBO estimates, current retirees don’t have to worry about receiving monthly checks. Younger workers may be justified in wondering about the future of Social Security.

The Original Social Security Program

The original program was created in the midst of the Great Depression only for workers as insurance that workers did not live their retirement years in poverty. Since benefits kicked in at age 65, and life expectancy then was 59 ½ for men and about 64 ½ for women, the system was statistically geared to stay financially flush.

Congress later expanded beneficiaries to retirees’ dependents and survivors, as well as disabled workers who now account for about 36% of Social Security payments.

Today Is Different

Social Security was meant to be a self sustaining program. That taxes a large base of workers to cover a smaller number or recipients. However, the original formulas is feeling modern pressures, including:

  • More beneficiaries who typically live longer than in the 1930s
  • Individual benefits that can begin at 62 (at a reduced rate)
  • Reduced revenue because of a prolonged recession with the high unemployment
  • A huge retiring baby boomer generation collecting rather than contributing

Department of Treasury and Social Security Fixes | Vernon Homes


Few would argue that the current system needs to change for long- term sustainability. Former Federal Reserve Board Chairman Alad Greensapan said. “ Because of the size of the contraction in the economic activity, unless we get an immediate and sharp recovery, the revenues of the trust fund will be tracing lower for a number of years.”

Gener Steurle, A Former Treasury Department Official Predicts That, “Social Security Is Going To Be There For Everyone In The Future…However You Won’t Get The Promised Benefits That You Have Under Current Law Because The Current System Basically Has Trouble Supporting That.”

Various Proposals (All Hotly Debated) Have Included:

  • Raising the retirement age
  • Reducing benefits
  • Raising taxes
  • Privatization in part of whole
  • Locking away Social Security revenue from Congress, which routinely spends it on other programs

What They Say

“ We had our name in at other places and had driven by Meetinghouse Village many times before we came to see it. We loved it immediately. Everyone was pleasant and kind. We moved in right away. People in our building are nice to be with and check on each other to make sure we're OK. We are happy to be here. ”

What They Say

“ Some six years ago I searched for a retirement apartment that was comfortable, safe and provided everything needed for independent living at a price that a person of modest means could afford. I found Meetinghouse Village not only met my basic requirements, but also provided for spiritual needs. I have felt no pressure to be anything but what I am. By living here, I feel I have grown and become a better person. I have become more tolerant and have a greater appreciation of God. ”

What They Say

“ I have lived at Meetinghouse Village for nearly 10 years - almost three years with my husband and seven years alone, since he passed away. It's a very pleasant and affordable place with no worries about maintenance and costly repairs. There's a lot to do: social events, game nights, movies, gardening, etc. if you wish to participate. We also have a hair salon, exercise rooms, woodworking shop, laundry room and mail room, all under our roof. I have quiet, friendly neighbors, and I feel happy and safe living here. I couldn't find a better place to live on my income. ”

What They Say

“ I enjoy living here because I feel safe and comfortable in an atmosphere of friendship and spiritual understanding. ”

What They Say

“ There are lots of reasons why I like living at Meetinghouse Village. It's close to parks, beaches, historical towns and cultural opportunities. The apartments are well appointed and comfortable, have decks and ample storage spaces. I like the fact that the staff arranges activities, and we residents are free to use the community spaces for gatherings of our own making. If we have guests, the guest apartment is a tremendous asset, and the fees are minimal. And if any of us have concerns, we can go to the executive director -- he listens. ”