It is no secret that the Social Security system is facing challenges, and people are nervous. In fact, with the pandemic causing record-high unemployment numbers and fewer people paying into the system, many have estimated that the Social Security program will run out of funds even faster than initially projected in the last Social Security Trustees Report.
The magnitude of the changes required are not trivial but also are not insurmountable. Even if no changes were made, the system would still be able to pay 76 cents of each promised benefit dollar based on then-current tax revenue. In short, people should not elect early out of fear that Social Security will not be there. The more likely scenario would be benefit cuts. In future posts we will talk about options for rescuing the system. For a customized report on your personal best Social Security claiming strategy click HERE.