The Social Security Administration recently published the “2007 Annual Report of the Board of Trustees,” which shows that the Social Security Trust Fund is in slightly better shape than it was in last year.

Still, the baby boomers are starting to retire, and the way the program is presently configured, demographics rule! It’s now estimated that in 2017, Social Security will start paying out more in retirement benefits to boomers and their parents than it takes in. And in 2041, it’s projected that the well will be dry and Social Security will be out of money.

Potential solutions abound, but the powers that be in Washington haven’t yet gotten together to figure out how to save Social Security. Given how crisis-oriented government is, it’s unfortunate that the new report provides no bombshell to prod our legislators into action.

The trustees certainly think Social Security can be saved, but the solution they put forth won’t sit well with politicians, retirees, or folks still in the workforce:

“Social Security could be brought into actuarial balance over the next 75 years in various ways, including an immediate increase of 16 percent in payroll tax revenues or an immediate reduction in benefits of 13 percent or some combination of the two.”

Ouch! I just don’t see that happening, even though the trustees point out that the longer we wait, the more it will hurt. Sooner or later, though, there will be a high level, bi-partisan commission set up to hammer out a Social Security rescue mission. That’s what happened back in the 80’s, the last time the program was overhauled.

Some modest changes have already been made. Probably the most important is that the retirement age is going up! If you were born in 1937 or earlier, it’s 65 – otherwise, the number goes up gradually to age 67 for people born in 1960 or later. That’s one way Social Security is making ends meet.

In the meantime, what you need to know is that Social Security will provide a key part of your retirement income – in the range of 40% of your salary. While your confidence in its future has probably been shaken by all the talk about what’s supposedly wrong with the program, Social Security can meet 100 percent of its obligations until 2041. It’s an extremely cost-efficient program, and we can count on the AARP, unions, and many other civic-minded organizations, to do everything in their power to make sure that Social Security remains secure.

How Much Will You Get from Social Security?
The Social Security Administration sends out statements every year, approximately three months before our birthdays, that give an updated estimate of our future benefits. There’s no need to wait, though, since you can request one at any time, via the Internet or phone: 800-772-1213.

The form you’ll need to submit is also available at local Social Security offices. Fill it out, return it, and in a month or so, you’ll get an estimate of your future benefits. Since it’ll take Uncle Sam about a month to get your statement to you, you can get a good sense of how much Social Security will mean to your post-retirement financial situation by using this Quick Calculator, which is on the Social Security Administration’s site.

Hopefully, crunching the numbers on Social Security’s site will ease your anxiety, at least to some extent. While you’re there, check out what happens if you want to leave the workaday world before your “official” retirement age. As long as you‘re 62 years and one month old, you can begin collecting from Uncle Sam, although at a lower monthly amount.

Feel better? Let us know!