From Graham Stephan.

Try Rocket Money for free: https://RocketMoney.com/graham/ – Enjoy! | Let’s talk about the social security deficit, why benefits could be cut by 2033, and what this realistically means for everyone watching – Enjoy! Add me on Instagram: GPStephan

GET MY WEEKLY EMAIL MARKET RECAP NEWSLETTER: http://grahamstephan.com/newsletter

THE SOCIAL SECURITY CRISIS:
Social Security is funded through payroll tax, at a total rate of 12.4% – and as you get older, you draw from a Social Security Fund to pay through retirement / supplement your income.

However, it’s said that, without any changes – “the social security fund is slated to be drained by 2033, which would result in an automatic 21% cut to beneficiaries’ monthly checks, regardless of marital or income status.” To make matters worse, it’s reported that “Older people are expected to outnumber children for the first time in U.S. history by 2034. There will be fewer workers to support each retiree in the future as a result.”

Essentially, we don’t have enough workers paying into social security to fund the full benefits of the baby boomers, which theoretically means that everyone else gets less.

THE ISSUE:
If nothing is done, we could see one of the following:

-One: Social Security Benefits will be reduced by the time all of us retire (most likely to the tune of 21-25%)
-Two: They Increase The Retirement Age So That They Can Pay Out Less Money (for example, instead of taking social security payments at 67 years old, perhaps it’s only available for those who are over the age of 72)
-Three: The Government Increases Taxes To Pay For Higher Expenses.

THE SOLUTION:

I hate to say it, but – REALISTICALLY – in order to keep Social Security fully funded, that’s most likely going to mean higher taxes in the near future, AND /OR a delayed retirement age so that fewer people can draw on those reserves.

At the end of the day, though: NO, I don’t think Social Security is going anyway anytime soon – and, if I’m giving my own prediction – I’d say you should be prepared to eventually pay higher taxes while they raise the retirement age another few years.

Again, all of this should serve as a reminder that – even though the government is there – you will go MUCH FURTHER by saving and investing on your own, living below your means – and, no matter what – hitting the like button and subscribing if you haven’t done that already.

The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://the-real-estate-agent-academy.teachable.com/p/the-youtube-creator-academy/?product_id=1010756&coupon_code=100OFF – $100 OFF WITH CODE 100OFF

My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB

For business inquiries, you can reach me at grahamstephanbusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.