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Yahoo
4 days ago
- Business
- Yahoo
What Would Happen to the Money You Paid Into Social Security If It Ended?
Will Social Security come to an end? Chatter about this long-standing question gained more attention as the Department of Government Efficiency (DOGE) was created with a mandate to significantly reduce government spending. Be Aware: For You: These fears appear to be overblown — while Social Security is facing funding difficulties, it's unlikely to be eliminated entirely — but in a hypothetical situation, what would happen if Social Security ended? More specifically, would you receive your contributions back, or would you not see any of the money you put into the program? Experts detail what could happen if Social Security closed its doors for good. If the Social Security program closed for good, it's highly unlikely that you would receive the money that you put into the system. Shawn DuBravac, Ph.D., CEO and president at Avrio Institute, explained, 'Social Security is not a personal savings account; it is a pay-as-you-go system. The money contributed today goes to current beneficiaries. Future benefits will depend on how the program is wound down.' In other words, the money current workers are paying into the system via taxes is being paid out to current retirees, not being held for the future. When those current workers retire, their Social Security benefits will be paid — at least in part — by the workers of that time. 'In most scenarios, contributions would not be returned dollar-for-dollar,' DuBravac said. 'Congress [would] need to pass legislation outlining any transitional benefits, but full reimbursement is highly unlikely.' While the government can adjust Social Security payouts if the program winds down, people who are not yet eligible for Social Security would likely end up holding the bag. Learn More: Social Security's premise is that you receive steady payouts after you retire. You only receive those payouts if you put money into the system. While anyone who uses Social Security to fund their retirement will benefit, there are clear winners. DuBravac explained that the return on investment (ROI) depends on your contributions, lifespan and whether you're married, divorced or single. 'Lower-income earners tend to get a higher ROI due to Social Security's progressive benefit formula,' he explained. 'Social Security is designed to help the most vulnerable retirees who have limited savings, are disabled or are the surviving spouse of a worker. 'For higher-income Americans, the ROI would be lower, but Social Security still provides a stable, inflation-adjusted income stream,' he added. Note that that doesn't mean lower-income workers will get bigger Social Security checks; they just get more back per dollar put in, because there is a minimum benefit. The lower-income beneficiaries would be hurt the most if the Social Security program came to a close. Since the program is progressive in nature, ending it would benefit high-income Americans the most. Even without DOGE, the Social Security program's solvency has been in question. The Social Security Trustees Report projected that the Social Security Trust Fund will become insolvent by 2033, based on data from 2024. That means the government may have to reduce benefits in the future if it doesn't change course. 'There are many bipartisan ideas that have been floated to preserve Social Security, but also to evolve the program,' DuBravac said. 'Raising the retirement age, modifying cost-of-living adjustments, introducing means testing and lifting the payroll tax cap are all ideas that have been discussed. Small changes can significantly extend Social Security's solvency.' However, the right solution involves quite a balancing act. DuBravac also explained that any further declines in fertility rates could make it even more difficult to reach an effective balance. 'A solution should aim to protect retirees and retirement without placing an excessive burden on future workers,' he said. More From GOBankingRates 8 Common Mistakes Retirees Make With Their Social Security Checks This article originally appeared on What Would Happen to the Money You Paid Into Social Security If It Ended? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Trump Wants To Lower Interest Rates: 4 Ways That Could Benefit Retirees
President Donald Trump has long been pushing for lower U.S. interest rates, exerting pressure on the Federal Reserve — despite the fact that the central bank is not controlled by the president. If Trump gets his way, however, there could be ripple effects across the economy, some of which will impact retirees. Find Out: Read Next: Here's a look at how retirees could benefit if interest rates were lower. Retirees could see a boost in their investment portfolios in a lower interest rate environment. 'Lower rates tend to boost equity markets by making borrowing cheaper and pushing investors toward riskier, higher-return assets, so this could benefit retirees' stock portfolios,' said Dr. Shawn DuBravac, economist and CEO of Avrio Institute. Learn More: Debt gets cheaper when interest rates decrease, which could benefit some retirees. 'Retirees who still carry debt, like mortgages or personal loans, may benefit from reduced interest expenses, improving their monthly cash flow,' DuBravac said. Lower interest rates can benefit retirees who want to add annuities to their retirement portfolios. 'For retirees considering annuities, lower rates can lead to better pricing on certain variable annuities that rely on market performance or benefit from falling rates,' DuBravac said. Lower interest rates could mean 'a lesser risk for a recession and a thriving economy,' said Joel Russo, owner and retirement advisor at NJ Retirement Planning in Sea Girt, New Jersey. This means less risk that assets in retirement accounts would lose value. While lower interest rates could benefit retirees' finances, there would also be some possible downsides. 'Retirees who rely on income from CDs, bonds or money market accounts will likely see those returns shrink, and that can in turn hurt their ability to generate stable income,' DuBravac said. 'Lower rates can put upward pressure on inflation, which can erode purchasing power. This can be especially impactful for retirees on fixed incomes.' More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? Are You Rich or Middle Class? 8 Ways To Tell That Go Beyond Your Paycheck 5 Little-Known Ways to Make Summer Travel More Affordable Here's the Minimum Salary Required To Be Considered Upper Class in 2025 Sources Dr. Shawn DuBravac, Avrio Institute Joel Russo, NJ Retirement Planning This article originally appeared on Trump Wants To Lower Interest Rates: 4 Ways That Could Benefit Retirees Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Should the Middle Class Really Be Worried About the State of Social Security? Experts Weigh In
Social Security is one of the most widely used and misunderstood government programs in America. With headlines warning of funding shortfalls and political gridlock, middle-class retirees and those under 55 are left wondering whether the federal safety net program will be there when they need it. Be Aware: For You: GOBankingRates talked to experts to uncover whether the middle class really should be worried about the state of Social Security. Social Security remains a cornerstone of retirement planning for millions of Americans. However, its financial foundation is under increasing strain. The program's trust funds are projected to be depleted by 2035. 'This does not mean that Social Security goes away entirely or that it runs out of money,' said Shawn DuBravac, an economist at Avrio Institute. 'It means the program no longer has enough money to cover scheduled benefits.' This looming shortfall is primarily due to demographic shifts, such as the baby boomers' retirement and increased life expectancy, which have led to a higher ratio of beneficiaries to workers. In 2024, the Social Security Administration paid nearly $1.5 trillion in benefits to more than 72 million beneficiaries, highlighting the program's extensive reach. 'If no changes are made, Social Security payments will rely exclusively on incoming payroll taxes, and these taxes are expected to cover only 77% of schedule benefits,' DuBravac said. 'So, Social Security doesn't run out of money, but benefits could be cut unless action is taken.' Read Next: Middle-class Americans should be concerned about the potential for reduced benefits, delayed retirement ages or higher taxes. Reduced benefits could mean retirees receive 20%-25% less than expected, which can be especially destabilizing for those without pensions or significant savings. Delayed retirement ages may require people to work longer than planned, potentially into their late 60s or 70s, while higher payroll taxes could shrink take-home pay during prime earning years. 'The middle class should worry about reduced future benefits, especially if Congress delays reform,' DuBravac said. 'Certain parts of the middle class likely earn too much to qualify for need-based programs, but too little to self-fund retirement fully. These families will feel the most squeeze.' Despite these issues, experts said Social Security is not on the brink of collapse. The program continues to collect payroll taxes and has broad political support, making complete dissolution highly unlikely. 'Social Security is a foundational part of the American retirement system, and it's not going anywhere,' said Rob Rickey, a certified financial planner and chief growth officer at StraightLine. 'But changes may still come, especially for younger workers, in the form of delayed retirement ages or adjusted benefit formulas.' While Social Security isn't going away, it won't stay the same, either. To ensure its long-term viability, policymakers will need to consider reforms, such as adjusting payroll tax caps, modifying benefit formulas or raising the retirement age. Proposals have been made to gradually increase the full retirement age (FRA) to 69. For instance, one proposal suggests raising the FRA by three months per year for those age 62 starting in 2025, reaching 69 for those age 62 in 2032. Nevertheless, experts said middle-class Americans should prepare for potential changes in Social Security. 'As public benefits crumble or decline, it is wise to start thinking about saving more,' said Benjamin Talin, a public policy consultant and founder and CEO of More Than Digital. 'So, think about maximizing your 401(k) [plans], IRAs or other retirement accounts now.' Rickey said individuals should minimize their dependency on Social Security by building resiliency in their retirement plan. 'You can do this by increasing your personal savings, ensuring you are appropriately investing for your risk level and time horizon to continue growing your retirement assets, and by creating multiple streams of income for retirement,' Rickey said. He added, 'Also, do not forget about your spending. Understanding your budget and controlling costs can strengthen your ability to minimize the impact of any income reduction during retirement.' More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 8 Items To Stock Up on Now in Case of Tariff-Induced Product Shortages Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy The 5 Car Brands Named the Least Reliable of 2025 Sources Shawn DuBravac, Avrio Institute Congressional Research Service, 'The Social Security Trust Funds in 2024 and Beyond.' Social Security Administration, 'Status of the Social Security and Medicare Programs.' Rob Rickey, StraightLine Congressional Budget Office, 'Raising the Full Retirement Age for Social Security.' Benjamin Talin, More Than Digital This article originally appeared on Should the Middle Class Really Be Worried About the State of Social Security? Experts Weigh In
Yahoo
18-05-2025
- Business
- Yahoo
Should the Middle Class Really Be Worried About the State of Social Security? Experts Weigh In
Social Security is one of the most widely used and misunderstood government programs in America. With headlines warning of funding shortfalls and political gridlock, middle-class retirees and those under 55 are left wondering whether the federal safety net program will be there when they need it. Be Aware: For You: GOBankingRates talked to experts to uncover whether the middle class really should be worried about the state of Social Security. Social Security remains a cornerstone of retirement planning for millions of Americans. However, its financial foundation is under increasing strain. The program's trust funds are projected to be depleted by 2035. 'This does not mean that Social Security goes away entirely or that it runs out of money,' said Shawn DuBravac, an economist at Avrio Institute. 'It means the program no longer has enough money to cover scheduled benefits.' This looming shortfall is primarily due to demographic shifts, such as the baby boomers' retirement and increased life expectancy, which have led to a higher ratio of beneficiaries to workers. In 2024, the Social Security Administration paid nearly $1.5 trillion in benefits to more than 72 million beneficiaries, highlighting the program's extensive reach. 'If no changes are made, Social Security payments will rely exclusively on incoming payroll taxes, and these taxes are expected to cover only 77% of schedule benefits,' DuBravac said. 'So, Social Security doesn't run out of money, but benefits could be cut unless action is taken.' Read Next: Middle-class Americans should be concerned about the potential for reduced benefits, delayed retirement ages or higher taxes. Reduced benefits could mean retirees receive 20%-25% less than expected, which can be especially destabilizing for those without pensions or significant savings. Delayed retirement ages may require people to work longer than planned, potentially into their late 60s or 70s, while higher payroll taxes could shrink take-home pay during prime earning years. 'The middle class should worry about reduced future benefits, especially if Congress delays reform,' DuBravac said. 'Certain parts of the middle class likely earn too much to qualify for need-based programs, but too little to self-fund retirement fully. These families will feel the most squeeze.' Despite these issues, experts said Social Security is not on the brink of collapse. The program continues to collect payroll taxes and has broad political support, making complete dissolution highly unlikely. 'Social Security is a foundational part of the American retirement system, and it's not going anywhere,' said Rob Rickey, a certified financial planner and chief growth officer at StraightLine. 'But changes may still come, especially for younger workers, in the form of delayed retirement ages or adjusted benefit formulas.' While Social Security isn't going away, it won't stay the same, either. To ensure its long-term viability, policymakers will need to consider reforms, such as adjusting payroll tax caps, modifying benefit formulas or raising the retirement age. Proposals have been made to gradually increase the full retirement age (FRA) to 69. For instance, one proposal suggests raising the FRA by three months per year for those age 62 starting in 2025, reaching 69 for those age 62 in 2032. Nevertheless, experts said middle-class Americans should prepare for potential changes in Social Security. 'As public benefits crumble or decline, it is wise to start thinking about saving more,' said Benjamin Talin, a public policy consultant and founder and CEO of More Than Digital. 'So, think about maximizing your 401(k) [plans], IRAs or other retirement accounts now.' Rickey said individuals should minimize their dependency on Social Security by building resiliency in their retirement plan. 'You can do this by increasing your personal savings, ensuring you are appropriately investing for your risk level and time horizon to continue growing your retirement assets, and by creating multiple streams of income for retirement,' Rickey said. He added, 'Also, do not forget about your spending. Understanding your budget and controlling costs can strengthen your ability to minimize the impact of any income reduction during retirement.' More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 8 Items To Stock Up on Now in Case of Tariff-Induced Product Shortages 4 Affordable Car Brands You Won't Regret Buying in 2025 4 Housing Markets That Have Plummeted in Value Over the Past 5 Years Sources Shawn DuBravac, Avrio Institute Congressional Research Service, 'The Social Security Trust Funds in 2024 and Beyond.' Social Security Administration, 'Status of the Social Security and Medicare Programs.' Rob Rickey, StraightLine Congressional Budget Office, 'Raising the Full Retirement Age for Social Security.' Benjamin Talin, More Than Digital This article originally appeared on Should the Middle Class Really Be Worried About the State of Social Security? Experts Weigh In Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
MD&M West Celebrates 40 Years of Leadership in Manufacturing Showcasing AI, Sustainability and the Future of MedTech
Top attending companies include Edwards Lifesciences, Mattel, Apple, Medtronic and Abbot/Abbvie. ANAHEIM, CA / / March 10, 2025 / MD&M West, a legacy leader in manufacturing excellence and one of the world's largest and most influential B2B advanced manufacturing trade shows, celebrated its 40th year anniversary, bringing together attendees from all 50 states and over 80 countries. With over 1,700 exhibitors and nearly 14,000 verified attendees, the event showcased the evolution of AI in manufacturing, the role of data in driving better research models and the importance of adaptability in an era of rapid technological change. The conference delivered more than 70 hours of education, covering critical topics such as AI's integration into MedTech, automation's impact on efficiency and how human-AI collaboration is shaping industries. Nick Webb of LeaderLogic presented keynote, "Driving Growth and Innovation in Medical Device Design, Manufacturing, and Packaging" sponsored by Synesqo, explored how AI is revolutionizing healthcare by improving data management, reducing costs and enabling real-time patient monitoring through wearable and implantable devices. In keynote "AI and the Future of Manufacturing: Envisioning What's Next," Dr. Shawn DuBravac of Avrio Institute highlighted how AI and robotics are evolving from static automation to adaptive intelligence, optimizing process in real time while leveraging AI driven analytics, predictive capabilities and automation to advance MedTech, sustainability and manufacturing efficiency. "The 40th edition of MD&M West was not just a celebration of our legacy, but a testament to the rapid advancements shaping the future of MedTech and manufacturing," Melissa Magestro, VP of Informa Markets Engineering. "This year's event underscored how AI driven automation, data intelligence and next-generation materials are transforming product development, improving manufacturing outcomes and streamlining production processes." The show floor featured cutting-edge developments, including Magic MedTech Zone, where over 50 exhibitors presented breakthrough healthcare solutions. The Emerging Engineers Student Summit, introduced over 300 local high school students, to industry leaders and hands-on technology experiences, providing them with unique opportunities to explore career pathways in engineering and manufacturing and participate in guided show floor tours. In addition, the Industry ShopTalk sessions facilitated discussions among professionals on the future of manufacturing automation and innovation. Beyond the keynotes and exhibits, MD&M West featured three education stages, bringing global experts together to discuss the latest trends, best practices and safety standards. Attendees also participated in Coffee Talks and Lunch & Learns, gaining insights into topics such as additive manufacturing, supply chain drivers, medical device testing and cybersecurity. As sustainability and efficiency become top priorities, the manufacturing industry is shifting toward more responsible production methods. As 99% of businesses are investing in energy efficiency, with a 7% increase in active investments compared to previous years, the global sustainable manufacturing market is projected to grow to $491.99 billion by 2032. Co-locating with the first-ever Sustainable Manufacturing Expo emphasized the event's commitment to environmental progress, highlighting eco-friendly and socially responsible initiatives across the industry. With Dupont as the sustainability sponsor, the event reinforced responsible manufacturing practices, energy reduction efforts and the advancement of sustainable materials and solutions. Continuing the event's global reach, MD&M East, the largest design & manufacturing event on the East Coast, will showcase advancements in MedTech, plastics, automation, manufacturing, packaging and quality. The event will take place from May 20-22, 2025, at the Jacob K. Javits Convention Center, for more information visit: MD&M West will return Feb 3-5, 2026, at the Anaheim Convention Center. To learn more about the event, visit: About MD&MMD&M, organized by Informa Markets Engineering, is the leading group of business events across the U.S. for professionals in medical, critical and advanced manufacturing. United under one brand, MD&M is the premier platform where professionals meet, learn and collaborate to drive innovations in life-saving devices, cutting-edge technologies and advanced manufacturing processes. Founded in 1985, the MD&M portfolio includes MD&M West, MD&M East, MD&M South and MD&M Midwest. Focusing on fostering collaboration across regions and sectors, MD&M is dedicated to empowering professionals through year-round engagement, advanced matchmaking technology and specialized events that reflect the ever-evolving needs of the industry. About Informa Markets EngineeringInforma Markets Engineering is the leading B2B event producer, publisher, and digital media business for the world's $3-trillion advanced, technology-based manufacturing industry. Our print and electronic products deliver trusted information to the engineering market and leverage our proprietary 1.3-million-name database to connect suppliers with buyers and purchase influencers. We produce more than 50 events and conferences in a dozen countries, connecting manufacturing professionals from around the globe. The Engineering portfolio is organized by Informa Markets, a subsidiary of Informa plc (LON:INF), the world's leading exhibitions organizer that brings a diverse range of specialist markets to life, unlocking opportunities and helping them to thrive 365 days of the year. For more information, please visit Media ContactInforma Markets Engineering PR EngineeringPR@ SOURCE: INFORMA MARKETS - ENGINEERING View the original press release on ACCESS Newswire Sign in to access your portfolio
