The Lifestyle Question of Social Security

Advisors and their clients must plan for the very real possibility that Social Security benefits will be reduced if the system runs out of money in 2033.

This article first appeared in Rethinking65 .

I have had my emotional ups and downs with Social Security, and I have not even drawn a penny out of the program. I am 60 and have had my wages garnished and paid into the system since my first job at 16. As an economics major in college, I wrote a paper in my senior year on the viability of the entitlement program and concluded it might not be around when I retire.

That has stuck with me over the years. On many a meeting with our financial advisors, my wife and I have asked them to run a model without including Social Security in the mix. It’s a way for us to gauge what it would take to head into post-career life without worrying about those funds, should the program not be there.

We have worked with five teams at three wealth management companies. The first three advisors basically chuckled when running the models without Social Security, confidently telling us don’t worry, it will be there. Our fourth advisor said it was pragmatic to be wary, but also pushed us to not get too hung up on it and to assume the money would be there. Our current wealth management team has provided us models from both viewpoints. Recently, that has become very important as we consider our retirement life.

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David Buck is the author of the book The Time-Optimized Life, owner of Kairos (Time) Management Solutions, LLC. Learn how to apply the concepts of proactively planning and using your time. Take the Time Management Analysis (TMA), the Retirement Time Analysis (RTA), or all the other free resources offered to help bring more quality time into your life.