Today on MoneyLife with Chuck Bentley

Our guest today is Ethan Pope, author of Social Security: What's in it for You? We'll talk with him about the state of the Social Security Program today.

This topic that affects everyone because you’re usually either paying into Social Security or drawing from it. We're going to talk about the status of the trust fund and it’s not good. If you’re living in man’s economy, that’s going to cause you some anxiety and fear.

We’re in an era where our society is very government-centric. But as Christians, we need to be God-centric.

Daniel is a good example of someone who lived that way. Daniel was exiled, taken as an indentured slave of the king, and the king didn’t share his beliefs. But Daniel recognized that God’s power was greater than the government.

So as we look at the facts about the Social Security system, there’s no reason to be fearful. It should simply remind us that we must rely totally on God. God is bigger than any government, He rules the world. When we look to God for help, hope, and insight, we’ll have peace. We can analyze and respond to problems without fear.

Ethan Pope has been a friend of this ministry for a long time. We're blessed to have him on the program today.

Ethan's book, Social Security: What's in it for You? has a wealth of information about the status of the program.

President Franklin Delano Roosevelt signed it into law in 1935, after the bank collapse in the 1930’s. It was intended to help people suffering during the Great Depression, to pay benefits immediately to the unemployed, not a retirement savings program.

It was supposed to be a pay-as-you-go system. That hasn’t happened and is the fundamental problem with the program. Today, money being paid by workers is paying benefits for those who have already retired.

In 1945, there were 42 people working for every one receiving benefits. Today there are 3.3 workers for every one getting benefits. The program is haded for a crisis.

Ethan says Social Security will go into deficit spending in 2010, and then come out of it for a few years. Then, in 2016, will go back into deficit spending. This means there will be less revenue coming in than money paid out in benefits. Long-term deficit spending is a problem.

There is supposed to be $2.4 trillion in the "trust fund," to be used when there is a deficit. However, there is no actual money in the trust fund, just government IOU’s, since the money has been spent. The government will have to raise taxes, or print money to put the trust fund back.

We will have more pressure points when Social Security reaches the deficit years. Benefits will continue to be paid, but they likely will be reduced. Today, 22% of seniors depend on Social Security for 100% of their income, while 33% say it accounts for 90% of their income. Another 66% of seniors depend on it for at least 50% of their income. Many people will be hurt as Social Security has problems.

Everyone needs to have a written spending plan and be living by it. Pray and ask God to help you develop it. You also need to have your own savings/investing plan. Don’t depend on Social Security. Use the impending crisis as motivation. Be a steady plodder.

The federal government is increasing its debt. Consistent reports from GAO and CBO say the nation is on an unsustainable financial course. Something unsustainable will eventually stop, so these are warnings.

We need to demand that our elected representatives make changes before that happens. By 2024, Social Security, Medicare, Medicaid, and interest on the national debt will consume 100% of projected federal revenue. That means there would be no money for anything else.

Despite the problems with Social Security and the federal government’s fiscal policies, Christians shouldn’t lose hope. Remember our hope and security comes from God alone. We need to faithfully pray for our leaders. Also, be engaged on this topic, know what’s going on, talk about it with others. Express your opinion to elected representatives. Use your voice to speak up for the next generation.

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Listeners in Dallas are invited to the premiere of the God Provides™ premiere tomorrow, October 16. We'll be showing Abraham and Isaac on the big screen at the AMC Grand 24 at 9 a.m. The doors open at 8:45 a.m., and seating is first come first served for this free event. We want you to catch a vision for how God can use this new resource. I'll be there and I look for ward to meeting you.

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