Navigating the uncertainty surrounding Social Security benefits is a common concern for many Americans as they plan for retirement. A recent survey conducted by Nationwide Retirement Institute found that 72% of adults worry that Social Security will run out of funding in their lifetimes, and 23% do not expect to receive any benefits at all. With the trust fund set to run out in 2033, it’s no wonder that voters in the upcoming presidential election are focused on candidates’ proposals for fixing the program.
Despite these concerns, experts believe that the complete elimination of Social Security benefits is unlikely. David Blanchett, managing director at PGIM DC Solutions, reassures that while benefit cuts are possible, it is improbable that benefits will disappear entirely. Additionally, Joe Elsasser, president of Covisum, emphasizes that planning for Social Security benefits to be completely eliminated is a poor assumption.
Understanding how Social Security benefits are calculated is essential for maximizing your retirement income. Benefits are based on the top 35 years of wages, with the highest earning years used to determine your benefit amount. You can claim benefits as early as age 62, but waiting until full retirement age (typically 66 to 67) or even later at age 70 can result in a higher benefit amount.
Consulting a financial professional to assess your Social Security claiming options is recommended by Nationwide and other firms. While many Americans may face a retirement savings shortfall, Social Security can help mitigate financial hardships in retirement. Without Social Security benefits, the prospect of retirees facing destitution is a real concern.
At Extreme Investor Network, we understand the importance of planning for a secure financial future, especially when it comes to maximizing Social Security benefits. Our team of experts can help you navigate the complexities of retirement planning and ensure that you are making the most informed decisions for a stable retirement. Stay tuned to our blog for more valuable insights and tips on personal finance and retirement planning.