Over 60 million Americans receive Social Security benefits, with many relying on it as a primary source of income. Now that there are more people entering retirement and collecting their Social Security benefits than there are new workers entering the work force, many are worried about the fund’s future financial status and whether or not it’ll run out of money. Learn more in this episode of USMR Market Insights with Patrick Brunson.
Can You Count on Social Security? – Video Transcription
Patrick Brunson: 00:00
So, one of the biggest issues that retirees and baby boomers are facing today is the overall security of the Social Security fund itself. There are a lot of cracks in the system and they are starting to become very apparent as more and more individuals begin to retire. One of the biggest issues right now with Social Security is the fact that we now have more people entering retirement and collecting their Social Security benefits than we actually do with new workers entering the workforce. Between 2010 and 2030, we are expected to see more than 70 million baby boomers retire, which will make the number of beneficiaries increased dramatically. It will be one of the largest beneficiary additions to the Social Security Fund that we've seen since the program started. The reason for this is those that design the actual program, couldn't anticipate that we would have such a huge surge in birth rates from this particular demographic.
Patrick Brunson: 00:54
On the other side, there's just not enough new workers entering the labor force to replace those that are retiring. Between 2015 and 2035 the worker to beneficiary ratio is forecast to fall from 2.8: 1 to as low as 2.1: 1. So basically, there won't be enough payroll tax revenue coming in to support the growing number of Social Security payments going out to retirees. This is many workers, including myself, that have basically given up on the fact that they will ever see a single dime of what they contributed to the fund and many are trying to find ways to get out of contributing and investing the money on their own. After all, we as consumers with just a little bit of discipline and knowledge, we could probably put that money in a much better area working for us than what the government can actually do for us.
Patrick Brunson: 01:45
So with that said, we have to make sure that we're being very proactive and ensuring our retirement by making sure that we are protecting money outside of these traditional vehicles. One of the main sources for this has always been precious metals, like gold. So, if you'd like to get more information on this topic, you can pick up U.S. Money Reserve's latest report, Gold 101: Your Guide to Gold. It really breaks down a lot of the details as to why gold can be one of the best assets you can own for long-term protection, and to ensure that you maintain the value of the dollars you're not spending today, and money that you would use later in life. So please call the number on your screen or click on the link below to get your copy. You can also comment and share this video if you think the information is useful to others as well. If you're watching us from YouTube, please subscribe to our page so that you don't miss a single episode. I'm U.S. Money Reserve's Patrick Brunson, and as always thank you for watching market insights.