Social Security’s Looming Crisis

by | Jan 27, 2020 | Wealth Management

According to 2019 projections by the Social Security Board of Trustees, the program’s expenses will exceed its income in 2020 for the first time since 1982. Social Security’s reserve fund is expected to be depleted in 2035, at which time beneficiaries will receive smaller payments than scheduled (about 20% across the board) if Congress does not take action. Medicare is expected to be insolvent even sooner – in 2026.

The problem is clear and more than one path leads to solvency. Congress will likely do what previous reforms have done, and bring spending and revenue back into line through some combination of benefit cuts and payroll tax hikes.  In addition, they are unlikely to change benefits significantly for anyone over age 50. We recommend that younger individuals, particularly higher earners, should be prepared for some cuts in their benefits.

Latest From The Blog


Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us

Financial Services Group BBB Business Review