Color of Money: Worried about cuts to Social Security? Author Andy Landis has created the bible on how to navigate this retirement benefit
WASHINGTON -- Social Security and retirement go together like peanut butter and jelly -- many people just can't have one without the other.
Yet when it comes to Social Security, there is a mountain of anxiety about how it factors into retirement plans, especially for the millions of people who depend on it as their only source of income.
Politically, Social Security is often vilified as an entitlement program that costs taxpayers too much. And there's concern that it's in danger of running out of money.
Let's take a look at that last point. Social Security does have some big funding issues, according to the just-released annual trustees report. Over the program's 83-year history, Social Security has collected about $20.9 trillion and paid out $18 trillion. But the reserves for the Old-Age and Survivors Insurance Trust Fund, which pays retirement and survivor benefits, will be unable to pay full benefits in 2034, according to the report. The Disability Insurance Trust Fund, which pays disability benefits, will no longer be able to pay full benefits in 2032.
"Social Security's total cost is projected to exceed its total income [including interest] in 2018 for the first time since 1982," the report said.
But even with this dire warning, the program would still have enough continuing tax income to pay out 77 percent of scheduled benefits for the Old-Age and Survivors Insurance Trust Fund in 2034. And there will be enough coming in to cover 96 percent of scheduled benefits for the Disability Trust Fund when its reserves are depleted in 2032.
So, despite its funding issues, the Social Security program isn't going anywhere, and that means you need to know how best to collect your benefits. To help you navigate this complicated and often confusing program, I'm recommending for this month's Color of Money Book Club "Social Security: The Inside Story," by Andy Landis (CreateSpace, $19.95). Be sure to get the silver-anniversary edition.
Landis is a guru of all things Social Security. He spent 12 years working for the agency, and then he put his insider knowledge to work for himself by helping individuals and professionals understand the labyrinthine program.
"Many people believe that Social Security is merely a retirement program," Landis writes. "But Social Security has always been much more than that. Today it is a comprehensive program of worker benefits, covering not only the worker but also family members."
Each chapter starts with a nutshell summary, which is a useful guide if you want to skip around to topics that interest you the most. I jumped straight to the section on "The Delay Strategy."
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