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5 little-known facts about Social Security

Retirement » 5 Little-Known Facts About Social Security

How broke is Social Security?
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How broke is Social Security?

According to many studies, the Social Security trust fund will be able to cover its retirement and disability obligations for the next 30 years or so, after which there will be a shortfall of about 22 percent. The Senate Special Committee on Aging figures funds will fall short in 2037.

Stumpf thinks those estimates are optimistic.

"The Social Security trustees assume an annual 2.8 percent inflation rate," he says. "Historic norms are in excess of 3 percent. That's a big difference when you're talking about trillions of dollars.

"We could make small adjustments now and bring it to fully fundable status; if we delay, it will be more painful. In 10 years the shortfall will be significantly bigger; in 20 years it will be through the roof."


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If you're 59 1/2 and still working, you can probably move your 401(k) out of your employer's plan and into an IRA, gaining more in
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