The funding level of the Social Security trust fund is something that’s been getting quite a bit of attention on the news recently. Since a lot of people across the country are dependent on Social Security benefits, there’s a lot of speculation that the increasing unemployment numbers and reduced payroll taxes are going to have a negative impact on Social Security benefits. Grant is here today to review some facts about the mechanism behind the Social Security trust fund. Toward the end of the episode, Grant shares his take on where we’re at, where we’re going and what we can do to make the situation better.
Show Notes
[03:46] How Social Security Works – The mechanism of the social security trust fund and how different sources contribute to the fund and the social security benefits that are available to you.
[08:49] Calculating Benefits – Grant reviews the Social Security Administration’s method of calculating social security benefits.
[12:33] Annual Forecast – The trustees of the Social Security trust fund are compelled to publish an annual forecast on the status of the fund. Grant talks about what the current forecast tells us about the stability of the fund.
[16:12] The Social Security Act – The story of how the Social Security Act was signed into law back in the 1930’s and how it affected our life expectancy.
[23:52] Available Options – Grant reviews several options available to the officials to reduce the impact of COVID-19.
[29:15] Future Changes – Grant shares his take on how Social Security benefits may change in the future to minimize the impact of COVID-19.
Resources
Social Security Administration: ssa.gov
A Summary of the 2020 Annual Reports - Social Security and Medicare Boards of Trustees: https://www.ssa.gov/OACT/TRSUM/index.html