aka: It’s Still Not Going Bankrupt
This has been a tough year for Social Security. After the year started out on such a bright note with the repeal of WEP and GPO, things quickly soured. The new administration unleashed the doughgie boys (DOGE) into the gears of Social Security. And they wreaked havoc. Layers and layers of new identification rules make it difficult for seniors to navigate. The newbies on the job are making a ton of mistakes. And despite what you’ve heard from the president and this administration, taxes were NOT eliminated on Social Security benefits. Amongst all this wreckage, it’s almost a miracle that Social Security is still not going bankrupt. Or as I called this situation in my latest book, Social Security: Lightly Toasted, Not Burnt.
But concerns about Social Security benefits are growing
While it is impossible for Social Security to go bankrupt, the concern about the unknown is real. The headlines grow more aggressive and alarming. My phone rings off the hook, and my inbox is filled with concerned people. They are near-retirees who want to know whether they should just throw in the towel and claim benefits early. No, they should not!
What this concern highlights to me is how incredibly important this program is to everyone thinking about retirement. People understand they’ve earned a benefit. It will be an important, if not critical, stream of income in their retirement. And they are losing confidence—and faith—in the Congress.
Actions speak louder than words. In the case of Social Security and Congress, they are paralyzed by total inaction. That is worse than doing something. Anything. It’s as if they’ve turned a blind eye to every one of us who will indeed depend on this income source. The result is more hype and hyperbole than people can reasonably be expected to handle.
So, what could I do to help lower the temperature?
After all, this is not a situation where you just take two extra-strength Tylenols and lie down for a nap! Instead, I do what I do best. I sat down at my computer and got started writing…
In July, I reached a major milestone in my business. 20 years at Mantell Retirement Consulting, Inc. Wow! It is hard to believe I jumped out of the Fidelity ship in 2005 and started my consulting business in a small dory. It has been a journey.
As part of my anniversary year, I knew I needed to update my original Social Security book. You may remember What’s the Deal with Social Security for Women?
Much has changed with Social Security since I first published that book in 2019. My top priority is to tamp down the rampant fearmongering. I strongly believe we need a clear way to return to the basics and the facts of the law. As many have requested over the last few years, I also needed to broaden the focus. I thought it would be good to channel Ruth Bader Ginsburg. In other words, be gender neutral since the rules apply equally to all genders. And the fear is universal.
It seemed to be an ideal time to rewrite the book with my amazing designer, Geralyn Miller. So, I got down to business.
Introducing Social Security: Lightly Toasted, Not Burnt
The end result is Social Security: Lightly Toasted, Not Burnt. The paperback is available on Barnes & Noble and Amazon. And for the first time, I have an e-book as well for those who prefer to read on a Kindle or Nook.
The cover is from the one and only Geralyn Miller. She found this amazing toaster circa 1940. It just seemed to be the perfect image for this book at this time in history. I hope you like it.
I wanted this book to acknowledge that Social Security does indeed face challenges today. But it’s not nearly as bad as most folks think.
The program is not the sliced white bread it has been since 1983, but it’s not burnt to a crisp either. It is a little more toasty than we all might like. But Social Security has a ways to go before we have a disaster on our hands.
Growing concerns
However, I never would have guessed things would become quite so critical with Social Security. If I had been betting in Vegas, I would have said that Congress would have done something by now. I’d have lost my 25 cents.
Thankfully, Social Security is not going bankrupt, but we are more concerned than ever. And by “we,” I mean those of us in the retirement industry who spend a ridiculous amount of time monitoring this program. And watching what Congress is doing to safeguard our most important social safety net.
On the surface, it appears Congress is doing nothing. That’s not exactly the case, and probably isn’t fair to say. However, the proposals some legislators have put forward to fix the funding have resulted in no changes. For the last 20+ years.
An ineffective Congress is one piece of the equation. But my real concern is with the projections from the Social Security actuaries. They are more aggressive in their messaging to Congress and the financial industry. They’ve been tolling the bell for decades. Now, they are banging and clanging the bell with a clear point of view.
What’s the rational course of action when things are so uncertain?
Let me suggest a few ideas for anyone concerned about Social Security’s future:
1. Read beyond the headlines. They are just attention-grabbers. The facts and real information are well into the article. Go deep. Read the entire article.
2. Stick to primary sources. There’s a lot of misleading information on social media. Find reliable sources from those who are in the know, not just wannabe influencers.
3. Do the math. There’s no definitive answer about when to claim Social Security. Deciding when to claim is a personal and critical financial decision. You need to do the math for your situation. Start with your Social Security statement. Then compare your options in your comprehensive retirement income plan.
4. Call your representatives in Congress. There’s nothing like getting involved with your elected representatives. We’re literally talking about making phone calls. You’ll rarely reach anyone, so just leave a message. You only get 90 seconds. If you’ve never called your representatives before, refer to 5Calls.org for a good starting place.
5. Believe that Social Security is lightly toasted, not burnt. Get involved to be part of the solution. There are many ideas to address the immediate solvency problem and the program’s long-term security. But all roads lead to Congress.
And, if you want the latest information plus examples of how Social Security works, please read my latest book, Social Security: Lightly Toasted, Not Burnt. I think you’ll find it helpful as you face your own claiming decision.
