The New Social Security Reform -- What It Means To You

This is from a well respected investment newsletter I received.  They speak about the new social security reform/provision for 2011 and what it means.  I think we are all going to have to face the fact that we need to look at other income generator to help bridge the gap:

Meanwhile, I Also See the Potential for
Big Social Security Reforms Coming
"I believe 2011 will be the year that lawmakers get serious about "fixing" Social Security again.
As I reported here last month, the Social Security Administration just did away with one of the little-known provisions that actually gave savvy folks the chance to increase their payments ... largely because professionals like me were touting it.
In addition, I would like to point out something that most folks have not noticed about the new tax deal ... it will actually mean LESS money going into the Social Security system in 2011!
Reason: One of the tax deal's provisions reduces the amount that workers will pay into Social Security by two full percentage points.
In other words, rather than paying in a full 6.2 percent of their pay — up to a cap of $106,800 — U.S. workers will only contribute 4.2 percent this year. (For their part, employers and the self-employed will continue to contribute another full 6.2 percent.)
Now, lawmakers have said they'll make up for this by taking more money out of the general fund. But that's like simply transferring a credit card balance from MasterCard to Visa!
Meanwhile, even if we assume that this reduction will only last one year ... it comes at a time when Social Security is already facing massive shortfalls!
So there are no two ways about it ... an unavoidable day of reckoning is near.
The system's last major overhaul came in 1983, and this time I think we'll see a big impact on both "wealthier" recipients and anyone farther away from collecting — especially through higher taxation of benefit checks.
The upshot is that we will all need to work even harder at building up our private income portfolios in 2011 and beyond. But given the possibility for richer dividends, I also think we'll have plenty of opportunities to do so throughout this year."  Nilus Nattive.