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☆ With Social Security trust funds 'rapidly heading to zero,' some ask whether the money should be invested in equities
▼ + stars: | 2023-10-05 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

The trust funds that Social Security relies on to pay benefits are "rapidly heading to zero," according to the Center for Retirement Research at Boston College. Those funds, which are typically invested in Treasury securities, are projected to run out in 2034, at which point just 80% of benefits may be payable. As that date draws closer, that has prompted more discussion as to whether that money should also be invested in stocks. "Theoretically, yes," said Anqi Chen, senior research economist and assistant director of savings research at the Center for Retirement Research, which recently published research addressing the question. More from Personal Finance:Here's what happens to Social Security benefits after you dieAs student loan bills resume, how economy may be shakenHow Congress may fix looming Social Security benefit shortfallBut the real-world answer is not necessarily clear-cut, Chen and other experts say.

Persons: Anqi Chen, Chen, Peter G Organizations: Social, Center for Retirement Research, Boston College, Finance, Social Security, Security, Peterson Foundation Locations: New York

☆ Claiming Social Security retirement benefits is a high-stakes decision. Don't let these 5 myths get in your way
▼ + stars: | 2023-08-19 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Moyo Studio | E+ | Getty ImagesSocial Security benefits provide retirement income for millions of Americans. Myth 1: Claiming early is bestNegative headlines may scare people into claiming as early as possible to get the most benefits. Eligibility for Social Security retirement benefits starts at age 62. Myth 4: Social Security benefits are not taxedThanasis | Moment | Getty ImagesThe misperception that Social Security benefits aren't taxed is "perhaps the biggest myth of all," said Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League. That includes the sum of your adjusted gross income, nontaxable interest and half of your Social Security benefits.

Persons: that's, Joe Elsasser, Elsasser, Laurence Kotlikoff, Bruce Tannahill, there's, Kotlikoff, Tannahill, Mary Johnson, Anna Frank Organizations: Social Security, Social, Security, Boston University, Senior Citizens League . Social Security

☆ Exclusive: Biden taps ex-Maryland Governor O'Malley to run Social Security agency
▼ + stars: | 2023-07-26 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +2 min

O'Malley, a Democrat, would need to be confirmed by the Senate to become commissioner of the Social Security Administration at a time when political partisanship has made confirming presidential nominees increasingly difficult. "Since Day 1 I have fought to strengthen and defend Social Security, which tens of millions of Americans have paid into and depend on to support their livelihoods. I know that Governor O’Malley will continue to be a strong partner that works tirelessly to protect Social Security for generations to come." The over $1 trillion budget U.S. Social Security agency has been run by an acting commissioner, Kilolo Kijakazi, since Biden in 2021 fired the Trump holdover Andrew Saul after he refused to resign. The main Social Security trust fund's reserves will be depleted within a decade, the program's trustees and the Congressional Budget Office both estimated this year.

Persons: Joe Biden, Martin O'Malley, O'Malley, Hillary Clinton, O’Malley, Biden, Kilolo Kijakazi, Andrew Saul, Kevin McCarthy, Trevor Hunnicutt, Heather Timmons, Andrea Ricci Organizations: Maryland, U.S, Social Security, White House, Reuters, Democrat, Senate, Social Security Administration, Democratic, Social, Trump, Republican, Congressional, Thomson Locations: Baltimore, O'Malley's, Maryland, Florida, New Hampshire, Pennsylvania

CNN —The Roald Dahl Museum in England, founded by the widow of the children’s author, has acknowledged his racism was “undeniable and indelible.”Dahl, who died in 1990, was the creator of characters such as Matilda, the BFG, Fantastic Mr. Fox, Willy Wonka and the Twits. Now the museum, based in the village of Great Missenden in Buckinghamshire where Dahl lived, has posted a statement on its website to say that it “fully” supports an apology released by the Dahl family and Roald Dahl Story Company in 2020 for the author’s antisemitic views. The museum adds that it “condemns all racism directed at any group or individual.”Based in Great Missenden in Buckinghamshire, where Dahl lived, the museum has condemned the author's racism. Greg Balfour Evans/AlamyIn the 2020 apology, the Dahl groups said they “deeply apologise for the lasting and understandable hurt” caused by his statements. ‘Providing the full story’The Roald Dahl Museum confirmed to CNN Thursday that the online statement issued this week is also on display in its entrance gallery.

Persons: Roald Dahl, ” Dahl, Matilda, Mr, Fox, Willy Wonka, Dahl, “, Greg Balfour Evans, Alamy, Hitler, ” “ Roald, Dahl’s, Marie van der Zyl, ” Organizations: CNN, Roald Dahl Museum, Roald Dahl Story Company, New Statesman, Jewish Leadership Council, Community Security Trust, ‘ Locations: England, Great Missenden, Buckinghamshire, Missenden

☆ As the Social Security reform debate heats up on Capitol Hill, leaders weigh if raising taxes is the answer
▼ + stars: | 2023-07-14 | by ( Lorie Konish | ) www.cnbc.com time to read: +1 min

When it comes to Social Security benefits, a key deadline is looming: Benefits may be reduced in the next decade if no action is taken sooner. The latest projections from the Social Security trustees show the program's combined funds may run out in 2034, at which point 80% of benefits will be payable. The fund used to pay retirement benefits may run out even sooner — in 10 years in 2033 — at which point 77% of those benefits would be payable. Social Security is a "pay as you go" program, Social Security Administration Chief Actuary Stephen Goss said at Wednesday's Senate hearing. More from Personal Finance:Social Security beneficiaries may see a lower cost-of-living adjustment in 2024Here's the inflation breakdown for June, in one chartSocial Security phone disruptions have led to longer wait timesIn 2023, up to $160,200 in earnings are subject to Social Security payroll taxes.

Persons: Actuary Stephen Goss, Goss, " Goss Organizations: Social Security, Capitol, Senate, Finance, Social

Social Security has likely touched your life or the life of someone you know. While you're working, a chunk of your paycheck goes toward Social Security. In 2023, nearly 70 million Americans will receive a Social Security benefit every month. The Social Security Board of Trustees projected in its annual report that the combined asset reserves of the Social Security trust funds will become depleted in 2034, one year sooner than previously projected. A woman stands outside a U.S. Social Security Administration building in Burbank, California, Nov. 5, 2020.

Persons: it's, Kathleen Romig, Valerie Macon Organizations: Security, Social Security, Budget, Social, Social Security Administration, AFP, Getty Locations: Burbank , California

☆ Opinion | Can Social Security Be Fixed Forever?
▼ + stars: | 2023-07-03 | by ( Peter Coy | ) www.nytimes.com time to read: +2 min

In 1983, the main Social Security trust fund came within months of being exhausted. Max Richtman, the president and chief executive of the National Committee to Preserve Social Security and Medicare, told me he thinks it’s too long. He wrote in a recent Substack post that even 75 years isn’t long enough to look ahead. That’s three times the size of the gap in today’s dollars when projecting ahead 75 years. Making Social Security safe for only 75 years effectively assumes that all beneficiaries will “conveniently expire” at the end of the 75th year and so won’t need checks, he said.

Persons: Alan Greenspan, Max Richtman, it’s, ”, “, he’d, Laurence Kotlikoff, I’ve, there’s, Steve Laffey, Kotlikoff, aren’t, ” Laffey Organizations: Social Security, National Committee, Preserve Social Security, Boston University Locations: Cranston, R.I

☆ 401(k) plans have never been hotter. That’s changing the stock market
▼ + stars: | 2023-06-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

The bill, signed into law late last year, requires employers to automatically enroll all eligible workers into their retirement plans at a savings rate of 3% of salary. Americans had pension plans, Social Security benefits, and their own savings through plans like the 401(k). Those funds tend to be controlled by large asset managers. But through a process called proxy voting, large asset managers are able to vote on shareholder resolutions on behalf of their clients. Asset managers have “significant influence over company practices,” wrote shareholder advocacy group ShareAction in a recent report.

Persons: New York CNN —, That’s, ”, Dave Stinnett, What’s, ShareAction, Tesla, Torsten Slok Organizations: CNN Business, Bell, New York CNN, BlackRock, Vanguard Group, Fidelity Investments, Street Global Advisors, Vanguard, Social Security, Social, Social Security Agency, Security, Lawmakers, Blackrock, Fidelity, Boston University School of Law, Harvard Law School, Vanda Research, EV, Apollo Global Management Locations: New York, United States

☆ As possible Social Security benefits cut looms, GOP senator says lawmakers are working on a 'big idea' fix
▼ + stars: | 2023-04-25 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Nicholas Kamm | AFP | Getty ImagesSocial Security's trust funds have a new projected depletion date that is about a decade away. The idea calls for creating an investment fund separate from Social Security and allowing the investment to earn returns over a period of 70 years, Cassidy said. It would target the Social Security trust funds' biggest weakness, which is that it has "the absolute worst investment strategy you could have right now," Cassidy said. 'Big idea' inspired by private pensionsThe idea for investing Social Security's funds in the market is inspired by private pension funds, which already buy securities outside of Treasurys. Possible changes to fix Social Security generally include tax increases, benefit cuts or a combination of both.

☆ Column: The new US Social Security forecast: what it means for retirees
▼ + stars: | 2023-04-04 | by ( Mark Miller | ) www.reuters.com time to read: +6 min

But if the headlines stemming from the annual report of the Social Security trustees jangled you, take a deep breath. The report, released on March 31, forecasts that the Social Security retirement trust fund reserves will be depleted in 2033. What does the new Social Security forecast mean for current and future retirees? But the trust fund also can accumulate balances when Social Security runs surpluses, as has been the case for the last several decades. A: Social Security collects FICA contributions only up to a certain level of wages - $160,200 this year.

☆ Social Security trust funds depletion date moves one year earlier to 2034, Treasury says
▼ + stars: | 2023-03-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

The Social Security trust funds that about 67 million Americans rely on for benefits are scheduled to be depleted in 2034, one year earlier than was projected last year, according to the annual trustees' report released by the Treasury Department on Friday. Unless Congress takes action, at that time, 80% of scheduled benefits will be payable from the combined funds for old age and survivors insurance and disability insurance. The new depletion date comes as the trustees updated their projections for the U.S. economy to include recent output and inflation. Meanwhile, Medicare's hospital insurance trust fund will be able to pay 100% of scheduled benefits until 2031, three years later than projected last year. The White House earlier this month laid out a plan to extend the solvency of Medicare's hospital insurance trust fund, also known as Medicare Part A, which covers hospital, nursing facility and hospice services for eligible beneficiaries.

☆ As Social Security reform talks heat up, changes to the retirement age, payroll tax may be on the table
▼ + stars: | 2023-03-04 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

A recent Congressional Budget Office report projected Social Security's combined funds may run out in 2033, two years sooner than the Social Security actuaries estimated last year. Raising retirement age may be a 20% benefit cutThe Social Security full retirement age is gradually changing to 67, based on changes enacted in 1983. Lawmakers are considering raising the full retirement age again to age 70. Current beneficiaries and near retirees would likely be spared from any retirement age changes. Warren and Sanders are calling for reapplying the Social Security payroll tax to income over $250,000, while also taxing certain business and investment income at 12.4%.

☆ The White House is reportedly eyeing a tax on high-earning Americans to fund Social Security after Bernie Sanders pushed it
▼ + stars: | 2023-02-23 | by ( Juliana Kaplan | Jason Lalljee | ) www.businessinsider.com time to read: +4 min

Bernie Sanders met with Joe Biden to pitch a tax on high-earning Americans to fund Social Security, The Washington Post reported. Sanders advocated for Biden to increase payroll taxes on high-earning Americans to fund Social Security for 70 more years as the program approaches insolvency in the next decade. Sanders' proposal would raise the cap on how much income is subject to the payroll taxes that pay for Social Security. According to a White House official, the White House has not endorsed any specific bill — but the president welcomes proposals from members of Congress on how to keep Social Security solvent and make the program even stronger. The idea of an expanded payroll tax to shore up Social Security isn't new for President Biden.

☆ Adani group firms pledge shares for lenders of flagship company – SBICAP Trustee
▼ + stars: | 2023-02-11 | by ( ) www.reuters.com time to read: +2 min

Feb 11 (Reuters) - Three Adani group companies have pledged shares for lenders to the Indian conglomerate's flagship Adani Enterprises (ADEL.NS), which pulled a $2.5 billion share sale during a recent market rout, the debt trustee firm said. Adani Ports and Special Economic Zone (APSE.NS), Adani Transmission Ltd (ADAI.NS) and Adani Green Energy Ltd (ADNA.NS) pledged shares to SBICAP Trustee Co, the firm said in Friday filings to the Bombay Stock Exchange. SBICAP Trustee said it had received the pledges in its capacity as "security trustee" of the lenders of Adani Enterprises. Fitch estimates that loans to all Adani group entities account for 0.8% to 1.2% of total lending by Indian banks rated by the agency. The Adani exposure of Indian banks is not enough to affect their credit profiles, two global rating agencies have said.

☆ Worried about Social Security benefit cuts? How calculators may help gauge how changes may affect you
▼ + stars: | 2022-12-05 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Hobo_018 | E+ | Getty ImagesHow to measure the effects of a benefit cutCovisum, a provider of Social Security claiming software, recently updated its calculator to reflect the Social Security trustees' latest projections. Offerings include a free version for consumers and a more complex paid version for financial advisors. Another product, Maximize My Social Security, lets consumers evaluate for a $40 annual fee which claiming strategy might best suit them. Because there are thousands of Social Security claiming rules, a more in-depth analysis can help identify the best way to get the most from the program for your unique situation. Why it's important to stress test your planIt's also important to remember the current depletion date projections are subject to change, as the Social Security trustees amend their projections each year.

☆ As Election Day approaches, Democrats warn that Social Security and Medicare are at stake
▼ + stars: | 2022-11-02 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

He also pointed to impending risks to Social Security based on plans floated by certain Republican lawmakers, namely Sens. What's more, it would mean letting two of the most important laws that established Social Security and Medicare expire, he said. It is unclear what his opponent Kean's stance is on Social Security and Medicare. While that's in keeping with years past, the difference this year is Social Security has been more of a front-burner issue. "Usually, it's a lot of lip service to Social Security and how they think it's a great program."

☆ Public servants like teachers and police often get reduced Social Security. Congress is weighing a bill that could change that
▼ + stars: | 2022-09-21 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Monkeybusinessimages | Istock | Getty ImagesMillions of Americans may receive reduced Social Security benefits if they worked in public roles as teachers, firefighters, police or government workers. "There just aren't that many legislative days left," said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare. Why public servants encounter reduced Social SecurityThe Social Security Fairness Act calls for repealing two titles of the Social Security Act that reduce or eliminate benefits for Americans who work in public service — the Windfall Elimination Provision and the Government Pension Offset. The Social Security Fairness Act would fully repeal both rules, thus making benefits more generous for those affected. 82 would need offsets not to have a huge financial impact on the Social Security trust funds, and it doesn't provide that," Sprick said.

☆ The U.S. retirement system gets a ‘C+’ grade, experts say — even though it’s worth $39 trillion. Here's why
▼ + stars: | 2022-09-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

The U.S. has a voluntary retirement savings system. But most IRA funds aren't contributed directly — they were first saved in a workplace retirement plan and then rolled into an IRA. 1 issue," Will Hansen, chief government affairs officer at the American Retirement Association, a trade group, said of workplace retirement savings. "[However], the retirement system is actually a good system for those who have access," Hansen said. In such cases, it may not be fair to place primary blame on the structure of the U.S. retirement system, Hansen said.

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