Broker Check

Michael A. Matheson, CFP®, CFS, CRPC®, CDFA™'s Client Quote of the Week - Social Security

August 08, 2016

"Since I was 7 years old in 1957, I was told that there would be no Social Security – what do you think Mike?”

Retiree Social Security income is a politically charged hot button issue and opinions vary from source to source and political season to season on its long-term viability.  From the time I started in the working with clients in this business in 1990, I have heard the same thing – Social Security will run out.  My opinion is that, while this is a FAR from a perfect system, the government will be making changes soon to impact the amount of future benefits that individuals will expect to receive – especially if you are under age 55.  Continued tweaks will be made over time to the system and I believe there will always be a form of retiree Social Security.  However, if you are counting on Social Security to be 100% of your safety net – think again and get planning.  Often with married couples, we assume either 50% of actual projected benefits or leave a spouse’s benefit out of the calculations entirely in an attempt to be (we hope!) conservative with the retirement projection.  Review your personal assumptions in your most recent financial plan about how Social Security is being used or not used as an income source. Let us know if we can help!