s o c a
Back Back

Social Security by the Numbers: Investing in a Secure Future

The future of social security is uncertain. For those planning retirement and counting on social security benefits, many of the advantages that previous generations relied on will be eroded by the time the current working force is ready to wrap up their careers. 

This can be a stark concept for those who plan to rely on social security benefits after retiring. Fortunately, there are alternatives to social security funds post-retirement, one of those options being a Pooled Employer Plan (PEP) like those offered by SOCA. 

This post will go over the state of social security, discuss social security benefits, what changing social security norms means for small businesses and their employees, and retirement solutions for small business employees. 


The State of Social Security 

Social Security is the largest source of income for most retirees and a crucial part of retirement planning. Lets take a look at some important numbers: 



-57% of U.S. adults say they rely on Social Security as a major source of income in retirement, according to a 2019 Gallup poll. 



Approximately 69.5 million people in the United States received Social Security benefits in 2020.  



The average monthly benefit for a retired worker as of 2022 was $1,666.49.  


- Experts say that as of 2022 and all the years after that, the amount of money needed for the Social Security Administration will be more than the amount of money coming into the system. In fact, since 2010, the cost of Social Security has been more than the money coming in, except if you count the interest earned on the money. This will make a comfortable retirement more difficult for todays workers. 



-The estimated cost-of-living adjustment for 2023 is 8.7%.  


Next 10 years 

Experts predict a $20.4 trillion cash shortfall in the Social Security system over the next 75 years.  


- The Old-Age and Survivors Insurance (OASI), and the Disability Insurance (DI) trust funds are the two sources of social security funds that recipients use for a portion of annual income. 


-There were about 2.8 workers for every OASDI beneficiary in 2021, this ratio is expected to decline to 2.3 by 2033 when the baby-boomer generation is largely retired.  


-OASI will exhaust its cash supply in the year 2034, this fund will need to be cut by 23% to sustain payouts through 2096.  


-42% of both democrats and republicans say they do not expect to receive social security benefits when they reach retirement age. 


- For those who want to invest their Social Security benefits, investing in mutual funds and equity investments can help build a nest egg for retirement. However, it is important to consult a financial professional and consider investment strategies carefully. 


- The Social Security Administration provides administrative services and customer service to current and future retirees, as well as people with disabilities. Security codes and online security tips are also provided to help protect against identity theft and other security risks. 


In the next section, we will discuss social security and how it makes a difference for small businesses and employees. 

What does the state of social security mean for me or my employees? 

The state of social security has significant implications for both individuals and their employees. With the increasing risk of insufficient funds in retirement, it is crucial to understand how this affects you and your employees. 

For individuals, this means that depending solely on Social Security income for post-employment life might not suffice to preserve fiscal steadiness. Other income streams, like pensions, 401(k) plans (learn more about 401k plans for small businesses), and personal savings, play a critical role. Retirement planning must be a top priority, and individuals might find it beneficial to consult with financial professionals. This can help ensure they are making the necessary Social Security contributions and strategizing effectively to ensure a relaxed retirement. 

For businesses, this might imply a greater dependency of employees on organization-sponsored retirement schemes and perks. Employers need to comprehend the significance of presenting competitive retirement benefits and encouraging employees to seize them. They should also furnish education and resources regarding retirement planning, which can aid employees in making knowledgeable decisions about their financial future. 

In essence, the status of Social Security benefits dictates that individuals adopt a proactive attitude towards retirement planning, including understanding their Social Security eligibility and the Social Security retirement age. Employers, on the other hand, must accord priority to retirement benefits as a tool to attract and keep talent. Collaboration between individuals and their employers in maximizing Social Security benefits can contribute towards ensuring a financially secure future for everyone.

Retirement Solutions for Small Business Employees 

For small business employees, securing a retirement plan and retirement savings may seem like a daunting task. Traditional retirement plans can be costly and require a lot of administrative work. This is where the SOCA PEP comes in as a potential solution. 

The SOCA Pooled Employer Plan (SOCA PEP) was created to make retirement planning more accessible and feasible for small businesses. This plan allows employers of all sizes, industries, and locations to join together as "member employers" in a Pooled Employer Plan. 

By pooling resources and sharing administrative responsibilities, small businesses can offer competitive retirement benefits that were once only available to larger companies. This type of plan may alleviate cost and administrative burdens that have historically made offering retirement plans difficult for small businesses. 

In addition to the financial benefits, the SOCA PEP may also provide peace of mind for employees. Financial stability in retirement can provide a sense of security and freedom to enjoy life after the workforce. 

PEPs are just one benefit of your SOCA membership. This blog post tells you how you can make the most of your chamber benefits. 

If you are a small business owner looking to offer a retirement plan to your employees, consider exploring the benefits of the SOCA PEP and how it may fit your companys needs. 


SOCA PEPs Help Make a Comfortable Retirement More Possible 

Over the next several decades the annual income received by retirees from Social Security will begin to shrink. The monthly income of retirees will be a reduced share of funds from Social Security and many investment professionals are advising that retirees will need more sources of income to survive. 

This hurdle is especially challenging for small businesses and their employees. To prevent loss of income in retirement years, your small business needs retirement plan options to help ensure your employees have a strong financial plan in their retirement years. 

That is where the SOCA Pooled Employment Plan (PEP) comes in. Under SECURE 2.0, employers can offer retirement plans and retirement savings to their employees through a PEP. 

Not only that, but a strong retirement plan can be an HR recruiting tool. Learn how in this blog post! 

PEPs help increase cost efficiencies, mitigate fiduciary risk, allow you to increase focus on growing revenue, optimize operation outsourcing, and bring in retirement plan expertise and investment advice. 

If your Cincinnati, Columbus, or Dayton small business is looking for the best way to help your employees prepare for retirement, then it is time to sign up for a PEP with Southern Ohio Chamber Alliance today! 

Click here to learn more about how the Southern Ohio Chamber Alliance PEP can work for your business! 

Follow SOCA on FacebookInstagram, and LinkedIn today! 

Happy with the difference SOCA has made for your small business? Leave us a five-star review here!  

Go To Top