Is the Health of Social Security in Danger?

Insights on a backup plan, 5 questions to ask when taking a hands-on approach to your 401(k) and more. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=44712&elqTrackId=14f971ae51734b8c8b6a4e61ec654172&elq=31081806df1645b1a0fcc8260d5bc499&elqaid=44712&elqat=1&elqCampaignId=21688) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] In 2022, almost everything that could go wrong for retirees did: Stock prices slid and bonds fell, too. Inflation spiked. But one part of retirees’ financial plans worked exactly as it was meant to last year: Social Security. Not only did retirees receive their checks on time but they also saw a 9% increase in their benefits starting this year, which helps make them whole with respect to inflation. If only we could get our portfolios to cooperate in that way! But the nagging question is whether Social Security will be there for future generations, especially given the rate at which the trust fund that underpins Social Security benefits is being depleted. I recently had the chance to sit down with [Social Security expert Mary Beth Franklin]( to discuss the future of the program, along with potential adjustments that Congress could undertake to shore it up. On an often polarizing topic, Mary Beth brings a balanced perspective rather than bombast. Mary Beth was one of the keynote speakers at our just-wrapped Morningstar Investment Conference, and Schwab chief investment strategist Liz Ann Sonders also headlined. Jeff Ptak and I had the chance to conduct [a live, onstage interview with Liz Ann]( at the conference, and we recorded it for posterity for our podcast The Long View. We covered the waterfront in our discussion: interest rates, inflation, employment, and recession, among other topics. Liz Ann’s take is that we’ve entered a new phase that she’s calling “the temperamental era.” And guess what? It’s not as bad as it sounds. Laura Lallos has prepared [a full conference wrap-up]( and Tom Lauricella and Russ Kinnel shared their main takeaways in this video with [Ivanna Hampton](. Finally, I appreciated [John Rekenthaler’s recent look at the current state of I Bonds]( the breakout “hot” category of 2022. Inflation yields on I Bonds have dropped significantly since last year, but there’s still a good news story: The Treasury Department recently indicated that it’s boosting the fixed rate yield on I Bonds to 0.90%. As John notes in the piece, the inflation adjustment that I Bond holders receive will ebb and flow, but the fixed interest rate on the bonds will remain with them to maturity. In other words, I Bonds are still worth your consideration, even though their tantalizing inflation adjustment has dipped. With warm regards, Christine Benz [Should You Be Worried About the Health of Social Security?]( Social Security expert Mary Beth Franklin recommends having a backup plan. [Watch Now]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Liz Ann Sonders: Navigating a New ‘Temperamental Era’ in Markets]( The Charles Schwab strategist on recession risks, inflation, Fed policy, the housing outlook, and more. [Listen Today]( [I Bonds Are on Sale!]( They now offer their best fixed-rate deal since 2007. [Read More]( [5 Questions to Ask When Taking a Hands-On Approach to Your 401(k)]( Selecting your own investments? Here's what to know before you start. [Read More]( [You Can Make IRA Contributions at Any Age, but Should You?]( Traditional IRA contributions after RMD age may make sense, but it depends on your tax situation. [Read More]( [How Can Active Stock Managers Improve Their Funds’ Performance? By Taking a Vacation—a Long One]( Active large-cap funds would have generated better risk-adjusted returns over the past decade if their managers’ hadn’t traded their holdings. [Read More]( [2023 Morningstar Investment Conference Highlights]( Our flagship conference was filled with investing insights from top experts. Here’s a recap. [Read More]( [Morningstar Investment Conference: Recession Risks and the Markets]( Plus, two Morningstar specialists share key takeaways from Larry Summers, Aswath Damodaran, and Liz Ann Sonders. [Watch Now]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602