Social Security & The Big Release

Added: 2026-05-10

[00:00:00]All right. Hey everyone, it's Matt here and if you're a social security beneficiary, this video is dedicated to you because any day now it's going to be released. And I want to give you a little heads up as far as what we can anticipate with these major announcements that will be coming out and what this means specifically for Social Security beneficiaries and the Social Security program as a whole because any day now we're going to be getting the once annual major social security announcement. Now, this comes out only one time per year, and it's right around this time. Any day now, literally any day, any week here, it's going to be released. And this is going to cause a ton of concern, a lot of confusion, and a lot of people to reach out and ask a lot of questions. So, anyway, before we get that announcement, I want to give you this little preface video and just be like, "Hey, here's what we can anticipate. Here's what it means." because every single year when we get this report that comes out again, there's a lot of people out there that are totally freaked out by this information. Okay. All right. So, let me walk you through the details as far as what the announcement is, what we can anticipate by it, and what it actually means because when this comes out, it's literally everywhere in the headlines. I mean, literally everybody and their uncle will be talking about it. The national news will talk about it. Your local news will probably talk about it.

[00:01:21]You'll see it everywhere on social media. And again, there's a ton of misleading and just, you know, misunderstanding around this information. All right. So, what is it?

[00:01:31]It is the annual Social Security Board of Trustees report. Comes out one time per year. It's right around this time frame. There's not a specific date in which that they release it, but it usually comes out sometime around April, May, or maybe in June. Last year, it came out in June, which was late. It's usually the end of April, earlyish May.

[00:01:53]So like literally right now as I film this video, it's like right around this time frame. Anyway, the once annual again Social Security Board of Trustees report. Now what is this? It's the report that comes out showing all kinds of details around the finances and the longevity of the Social Security program. Now, here is the important part about this. Just a couple months ago, we got a separate report out of the CBO, the Congressional Budget Office that has moved up the insolveny time frame on Social Security. Now, what that means, and again, this is where a lot of people uh misunderstand this and go wrong, is that people think Social Security is going bankrupt. It's not going bankrupt.

[00:02:35]They've got a ton of money and they have a ton of income. The program is not going away. But here's where the misunderstanding and the miscommunication comes in. When people see these numbers and the timeline on this, they think, "Oh, no. Social Security is ending." No, it's not ending. It's not going away at all.

[00:02:53]Okay? Not at all. It's not going away.

[00:02:55]But in that separate report out of the CBO, they moved up the timeline on Social Security insolveny to 2032. As I film this video right now in 2026, that's only 6 years away. 6 years goes by very fast. Just imagine. Just six years ago, we were sitting around at home in our pajamas and our underwear all day um hoarding toilet paper. I mean, seriously, that was not that long ago, right? It feels like it was, you know, like not that long ago. It was 6 years ago already. You know what I mean?

[00:03:24]So, my point is 6 years goes by very, very fast. Here's what they said. Okay, CBO says insolveny 2032 and at that time they would need to cut benefits by about 28%. That's nasty.

[00:03:37]That's a bad bad number. Now, that's again the report out of the CBO. This next report that we're going to be getting here out of the Social Security Board of Trustees annual report is again going to give us the forecast and the longevity on Social Security. In other words, what is that new timeline on Social Security insolveny? In other words, what that really means is when will the Social Security trust fund, remember there's two trust funds.

[00:04:03]There's the disability trust fund. That one's totally fine. But then there's also the old agent survivors trust fund.

[00:04:09]That's the one that pays out retirement benefits, survivors benefits, and spousal benefits. That's the trust fund that pays out those benefits. That one is scheduled to be insolvent, as in totally empty, totally out of money.

[00:04:23]Think of it this way. It's a bank account and it's running dry. They're they're draining it very slowly and in about six years it's going to be empty.

[00:04:31]that bank account for social security, okay, does not mean that social security is ending. That's not what it means. But anyway, they will give an update on the timeline of the old agent survivors trust fund insolveny. Okay, we're anticipating 2032. Okay, that's what we're anticipating. But here's the big one as well. They're also going to give two different numbers. Number one would be how much benefits would need to be cut if they do not combine the trust funds. Okay, so meaning if they leave just the old aged survivors trust fund to go ins solvent independently, how much would benefits need to be cut at that time if they allow it to go insolvent? The next number that will be released as well is if they combine the two trust funds, the disability trust fund and the old agent survivors trust fund. And there'll also be a percentage as far as how much benefits would need to be cut at that time if they combine the two trust funds. Quick side note, it is not legal for them to combine the trust funds. they would need to change the law in order to combine the trust funds. I don't think they should combine the trust funds. They're going to take down all the programs rather than just, you know, a handful of them. I don't know. I feel like they're going to scratch out a couple extra months of solveny if they combine the trust funds and then they're going to take down the disability program at the same time.

[00:05:49]Doesn't make any sense. I don't like that idea. But anyway, that's what they're also going to show. They're also going to give us some other uh information as far as how much money Social Security brought in last year. As in how much money did they bring in through their main three main sources of income? Remember, they have three main sources of income. Number one, and by far the farthest, they bring in about 1.2 to 1.3 trillion in this one form of of income, which is payroll taxes.

[00:06:18]Payroll taxes, the 12.4% 4% tax that is collected on every dollar earned up to the maximum taxable earnings cap. Okay.

[00:06:26]6.2% paid by the employee, 6.2% paid by the employer, 12.4% tax of every dollar up to the maximum taxable earnings cap is paid into the Social Security trust fund. Okay? So, they're going to show us how much money they brought in. It's probably going to be around 1.3ish trillion. It's a lot of freaking money, right? Could you imagine bringing in a $1.3 trillion of income? That'd be fun.

[00:06:51]You couldn't even spend that money. I guarantee it. That's a massive amount of money. Anyway, they're going to give us that detail. They're also going to show us how much money they brought in through taxation on social security benefits, as in higher income seniors who are getting social security and paying taxes on their benefit. That's what people call as the double taxation.

[00:07:10]And then they're also going to show us exactly how much money they brought in through interest on the money in the trust fund. It's not going to be much.

[00:07:18]Maybe 5060 billion there, which to you and me 1560 billion is done a ton of money, but it's not that much. That's only about two weeks worth of benefits.

[00:07:27]Okay, remember they pay out about $120 billion plus dollars a month in benefits. So 5060 billion in interest over the course of the year. It's a lot of money, don't get me wrong, but that's only two weeks worth of benefits, which is nuts, right? So, anyway, those are the three main sources of income, and they will reveal to us exactly how much they brought in uh in the last year.

[00:07:48]Okay? They're also going to move up the time frame on when insolveny will be hitting according to these numbers. Okay? And the long-term projections on social security. Okay?

[00:07:59]So, there's going to be a lot of numbers here. And that is why this can get so massively confusing, especially with everybody and their brother talking about it out there saying, "Oh my, Social Security is going bankrupt in six years." No, it's not. No, it's not.

[00:08:14]Okay, I want to make that very, very clear. I say that all the time in these videos. Social Security is not going bankrupt. Now, let me explain this super fast as far as the insolvenies thing just to clarify this before this information hits the wire. And again, I anticipated here any day, any week now, this will be coming out. And again, I don't know exactly when. We don't know exactly when. Whenever the uh the trustees meet and they release this report, uh that's when we're going to get it. Okay. But within the next couple weeks here, for sure it'll be released.

[00:08:43]Okay. Anyway, well, again, I don't know for sure, but it's it's right around this time frame, April, May, maybe June on the late side. Okay. That's like right now as we speak. All right.

[00:08:53]Anyway, um so what else was it? Oh, yeah, the insolveny thing. Okay, let me explain this super fast. If the trust fund would be allowed to go ins solvent, and again I don't think that it will, but we don't know. If the trust fund goes insolvent, what that means is the savings account of social security has say, you know, whatever it has $2.7 trillion as of the last report. All that money is going to be gone in say six years. Okay? The trust fund, the savings account, the bank account of social security will be empty. Does that mean all of our benefits end? No, not at all.

[00:09:24]Because remember, every single month, Social Security is bringing in tens of billions of dollars through payroll taxes. What they would do is think of it this way. Let's just say that on any given month, Social Security brings in, say, $und00 billion of benefits. Okay?

[00:09:40]I'm just making up numbers here for easy rounding purposes and for this example.

[00:09:44]But every single month, let's just say that they bring a hundred billion dollars of of uh taxation, money through taxation on payroll taxes. Okay? 100 billion. But yet their liability to pay out to beneficiaries, let's just say, is $125 billion. Okay? Now, let's say in six years the trust fund goes insolvent.

[00:10:03]They have to pay out 125 billion, but yet they only have 100 billion coming in in revenue, right? They can't just manufacture $25 billion out of thin air.

[00:10:13]They would have to cut benefits consistent with the lack of money coming in. And therefore, that's where that cut to benefit would actually come in. um to the benefits to actually they could only pay out the amount that they're bringing in. So they bring in 100 billion in in payroll taxes, they pay out hundred billion in taxes uh in benefits. I I I mean versus the 125 what they need to pay out their liability. Does that kind of make sense? So that's where that comes in. They would still pay out the benefits. You're just not going to get the amount that we would anticipate.

[00:10:45]There'd be a cut to benefits because they don't have the money coming in that they need to pay out. Think of it on a personal level. Okay, I'm going to give you one more last example here and then I'm going to wrap this video up because I don't want it to get too long. Think of it this way. Okay, a better way to understand this. You get $1,000 a month from social security. Your monthly expenditures are, you know, I don't know, $1,000 right now. Okay, $1,000.

[00:11:12]So, that's just the example that I'm going to give right now. So, the you you bring in $1,000, you pay out $1,000. All is good. Now, let's just say you bring in $1,000, but now your expenses are, say, um, you know, $1,200, something like that, right? It just doesn't add up. The math doesn't add up. The numbers don't make out. Does that kind of make sense? Kind of the same situation here as in Social Security, they only have the money to pay out, you know, whatever the income they have coming in. Same situation here. They could only pay out the money that is coming in through income even though they have a higher liability. Does that make sense? Okay.

[00:11:47]Anyway, hope this helps you to understand this. And again, this going to hit the wire here any day. When it does, it's going to cause a boatload of confusion for a lot of people out there.

[00:11:56]And I wanted to clarify it for you really quickly here in this video. We don't know the details of the report yet. But we can kind of anticipate based on, you know, the the other reports we've seen out of the CBO and other private reports that have come out. But let's just hear it right from the horse's mouth, which will be the board of trustees in report. And again, it comes out one time per year, any day now. It'll be hitting the wire. Of course, I'll break it all down for you once we get that information and I'll let you know exactly what you need.

[00:12:23]Otherwise, um, drop your comments, questions, and feedback down below. Let me know what you need. I can certainly come back and clarify for you in a separate video. Otherwise, as always, if you're on Medicare, if you need to enroll in Medicare, if you're turning 65 in the next 6 months or so, if you recently moved across state lines or county lines, if you have a special enrollment period opening up for you, if you don't like your Medicare plan, if you have questions on Medicare, if you're confused about Medicare, if you need help uh finding a better plan for you, contact Chapter there, 100% for free. Chapter Medicare. Again, they've helped about 14,000 of you that have contacted that phone number just in the last year and a half or so, give or take a little bit. And those of you in this community have collectively saved nearly $3 million just in the last year and a half. Amazing. That phone number right there has been worth nearly $3 million to those of you in this community.

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