At Extreme Investor Network, we pride ourselves on providing unique and valuable information to help you make informed decisions about your personal finances. Today, we’ll be discussing the topic of Social Security and the common misconceptions surrounding its future sustainability.
A recent report on Social Security has shown that a strong economy has helped the program, but the trust funds may be depleted in the next decade if no changes are made. Despite this, many Americans have a misplaced worry that benefits will disappear completely. Emerson Sprick, associate director of the economic policy program at the Bipartisan Policy Center, dispels the myth that the program will cease to exist once the trust fund runs out.
Even if Social Security’s trust funds are depleted, the program will still have revenue from payroll taxes, and benefits will still be distributed, although they may be reduced. It’s important to note that 75% of adults ages 50 and up believe Social Security will run out in their lifetime, according to a 2023 Nationwide Retirement Institute survey.
When it comes to claiming Social Security benefits, data shows that retirees often don’t wait until they are eligible to receive 100% of the benefits they’ve earned. The most popular age to claim benefits is 62, even though beneficiaries take about a 30% cut for not waiting until their full retirement age. For every year beneficiaries wait past their full retirement age up to age 70, they stand to receive an 8% benefit increase.
The top reasons for claiming benefits early include concerns that Social Security may run out of money and the need for immediate financial support. However, experts generally agree that it’s best to delay claiming retirement benefits to maximize your monthly payments.
At Extreme Investor Network, we advocate for delaying Social Security benefits unless personal circumstances dictate otherwise. Social Security benefits are adjusted annually for inflation, making them a valuable source of retirement income. By delaying your benefits, you can increase your monthly payments and ensure greater financial security in the long run.
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