The future of Social Security - what you need to know
Social Security drain coming soon - what you should do
While 2026 will see a cost of living bump, the overall future of this national safety net is trending in the wrong direction.
FOX 2 - It’s something all workers pay into, but very few really pay attention to it until you need it.
The topic is Social Security. A safety net of sorts that insures you will have some money each month after you leave the workforce.
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There are a few numbers to consider here. First off, 62 is the earliest age you can start drawing on Social Security.
However, if you can wait until you turn 70, the monthly payments will be the highest possible.
And while 2026 will see a cost of living bump, the overall future of this national safety net is trending in the wrong direction.
"We’re expected to rely on that for the last 20, 30 years of our life," said Jim Komoroski.
So Komoroski, a financial advisor with M1 Agency, says the sooner you think about it, the better.
"Where are we in terms of the state of Social Security?" he said. "Will it be there and for how long? If we have no legislation, and we just continue along this path, in the year 2033 to 2035, expect Social Security for everyone to be cut at 77-78% of benefits."
He predicts huge changes to this American staple, which has been around since 1935.
"We are in the silver tsunami," he said. "In the next four and a half years, we will add 11,000 people a day in the US that are turning 65. Over 350 here in Michigan, per day."
When you factor in a growing reliance on AI it points to fewer workers paying into Social Security and a need for a robot tax of sorts.
"As these jobs are not replaced and we affectively have robots not paying into the Social Security system, that’s where we should see that number accelerate faster. Meaning we need legislation out of Washington to save the trust fund."
That could mean a $2,000 monthly payment today could be less than $1,600 in 10 years from now.
In the immediate future a recently announced 2.8% Social Security cost of living increase will take affect in 2026.
"On average in Michigan that’s about $60," Komoroski said.
But while Social Security goes up - so will property taxes, food prices and Medicare.
Komoroski says all this not panic people, but rather to prepare. Start to think about your long term future in your late 40s and early 50s.
"If there is one website going into retirement to visit I would tell any senior to really familiarize themselves with, it’s ssa.go," he said.
Social Security is used by nearly 74 million people making it the largest financial lifeline in the country.
The Source: Information for this report comes from an interview with Jim Komoroski from the M1 Agency.
WASHINGTON, DC - OCTOBER 14: In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. The Social Security Administration announced recipients will receive an annual cost of