Will Social Security Be There for You?

Social Security is designed to pay retired workers age 65 or older a continuing income after retirement. Yet, a recent study found that only 30% of workers today believe that Social Security will provide a major income source during their retirement years.1

The Social Security Administration reported in 2018 that the Social Security Trust Fund reserves, which provide retirement income to millions of workers each year, are projected to run out by 2034.2 However, that doesn't mean that we'll be saying goodbye to Social Security anytime soon. Here's why:

Social Security retirement benefits are funded largely through payroll taxes on current workers. This means that, as long as Americans keep working, Social Security should be able to continue paying benefits for decades to come, although at a reduced level.


Currently, Social Security projects that qualifying retirees can expect to receive 77% of their scheduled benefits starting in 2034.3 Of course, this could change, depending upon many factors, including whether Congress acts to shore up the system. That's why it's more important than ever to take control of your own retirement planning. Here are three things you can do.

1. Be in the know.
Starting at age 25, you should receive a report from Social Security every five years that updates your estimated monthly benefit. You also can check the Social Security Retirement Estimator online anytime to estimate your future benefits.

2. Get a ballpark.
Social Security was never meant to be a sole source of retirement savings. Current benefits replace about 40% of the average wage earner's salary, according to the Social Security Administration – far less than what you'll likely need to live comfortably in retirement. To see if you're on track to meet your income needs, try our Retirement Readiness Calculator.

3. Maximize your benefits.
You can start taking Social Security benefits (at a reduced rate) as early as age 62. However, delaying your payments could boost your monthly benefits significantly. To see how much, use Social Security Early or Late Retirement Calculator

Keep in mind that this article is for informational purposes only. Please consult your financial or tax adviser for more complete information regarding Social Security and how you can implement a plan to maximize your benefits.


"2019 Retirement Confidence Survey," Employee Benefit Research Institute/Greenwald & Associates, April 2019.


"The 2018 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds," Social Security Administration, https://www.ssa.gov/oact/tr/2018/tr2018.pdf.




 You should consider the investment objectives, risks, and charges and expenses of the variable annuity contract and the underlying investment funds carefully before investing. This and other information is contained in the contract prospectus or brochure and underlying funds prospectuses and summary prospectuses, which can be obtained by calling 1-800-468-3785 or visiting mutualofamerica.com. Read them carefully before investing.

Mutual of America's group and individual retirement products are variable annuity contracts and are suitable for long-term investing, particularly for retirement savings. The value of a variable annuity contract will fluctuate depending on the performance of the Separate Account investment options you choose. Upon redemption, you could receive more or less than the principal amount invested. A variable annuity contract provides no additional tax-deferred treatment of benefits beyond the treatment provided to any qualified retirement plan or IRA by applicable tax law. You should consider a variable annuity contract's other features before making a decision.

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