While discussing the fact that seniors will not be getting a cost of living increase on their Social Security benefits next year, Fox host Julie Banderas allows financial consultant Dominick Tavella to propagate the myth that the Social Security trust fund is broke. Tavella apparently wants the Fox viewers to believe that the surplus disappeared because the system is paying out more than it's taking in right now. Maybe he's trying to drum up some business for his investment company.
Banderas: With Social Security obviously being the primary source of income as you mentioned for a great majority of Americans, in fact 64% of retirees.
Banderas: 64%, that is a huge disadvantage for so many of our seniors. I guess... do you need to think a little differently about retirement given these circumstances?
Tavella: Well obviously if you're not retired yet and particularly if you're younger and have a long time to go, if you are not paying attention to what's going on here, if you are not seeing the writing on the wall then you really have to be walking around with your eyes closed.
This system, the Social Security system simply is broke. It is broke today. They are spending more money today than they're actually collecting way ahead of schedule. So the solutions to this are going to be painful and particularly painful the younger you are.
They're going to push out the age for retirement. We're hearing rumors it might go out to age 70. We're hearing who's even going to be eligible for getting Social Security. They're going to put income limits in place. So you have to take care of yourself. If you don't you really have nobody to blame but yourself.