Listen and subscribe to Decoding Retirement for in-depth insights.
Social Security: Challenges Ahead, but Not Bankrupt
While the Social Security trust fund is projected to deplete in 2033, the program will not cease to exist. However, benefits may diminish to 79% of projected amounts.
Planning for the Future
Individuals should anticipate three potential scenarios for Social Security: best-case, worst-case, and probable-case outcomes.
Congress Options
Congress can address these challenges by:
* Raising the wage base limit
* Reducing benefits
* Raising the full retirement age
Deciding When to Claim Benefits
Timing is crucial when claiming Social Security. Factors to consider include:
* Health
* Work status
* Other income sources
Key Numbers
* 62: Earliest age to claim benefits (reduced by 30%)
* 67: Full retirement age (benefits remain unchanged)
* 70: Latest age to claim benefits (increased by 24%)
Survivor Benefits and Life Expectancy
The decision to claim Social Security impacts survivor benefits, especially for higher-earning spouses. Life expectancy is a midpoint, with a 43% chance of a 65-year-old couple reaching age 90.
Informed Decision-Making
Before claiming Social Security, gather as much information as possible to make an informed decision that aligns with individual circumstances.
Decoding Retirement Resource
Tune in to Decoding Retirement for expert guidance on retirement planning and financial literacy. Episodes are available on video and streaming platforms.