Why this Statement is important for your financial planning

You have probably been paying into the nation’s Social Security and Medicare systems since you first began working. The enclosed Statement is a report of what you have paid into these programs and an estimate of how much you can expect to eventually get in benefits.

You will receive a Statement each year about three months before your birthday. As you read through your Statement, you should pay close attention to a few items.

Check your earnings information. This will be the basis for determining how much you will receive in Social Security benefit payments.

If you change jobs or marital status, make sure your name and Social Security number are reported correctly on your employer’s records.

Will Social Security still be around when I retire?

Yes. The Social Security taxes you now pay go into the Social Security Trust Funds and are used to pay benefits to current beneficiaries. The Social Security Board of Trustees now estimates that based on current law, in 2037, the Trust Funds will be depleted. Because people are living longer and the birth rate is low, the ratio of workers to beneficiaries is falling. Therefore, the taxes that are paid by workers will not be enough to pay the full benefit amounts scheduled.

However, this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2037 from taxes paid by workers to pay about $760 for every $1,000 in benefits scheduled.