This week's discussion revolved around Social Security and how financial planners should plan around its uncertain future. Despite the uncertain future of this social program, financial planners should be prepared to maximize the benefits their clients can receive.
The social security program was enacted in 1935, and Medicare began in 1965. SS is now the largest government program in the world. The program is in trouble because it has consistently distributed greater payouts than the contributions received. Also, many Americans outlive their expected benefits which increases costs further.
Social security currently offers retirement, disability, family benefits, survivors benefits, medicare, and supplemental SS. To qualify for benefits, an individual must earn 40 quarters of coverage to be considered fully insured. To be insured for survivor's benefit, an individual needs six quarters of coverage out of the previous thirteen quarters. Beneficiaries include the participant worker, participant's spouse, participant's children, dependent parents, and workers divorced spouse (if they were married for 10+ years).
The social security program was enacted in 1935, and Medicare began in 1965. SS is now the largest government program in the world. The program is in trouble because it has consistently distributed greater payouts than the contributions received. Also, many Americans outlive their expected benefits which increases costs further.
Social security currently offers retirement, disability, family benefits, survivors benefits, medicare, and supplemental SS. To qualify for benefits, an individual must earn 40 quarters of coverage to be considered fully insured. To be insured for survivor's benefit, an individual needs six quarters of coverage out of the previous thirteen quarters. Beneficiaries include the participant worker, participant's spouse, participant's children, dependent parents, and workers divorced spouse (if they were married for 10+ years).