My Comments: With the GOP now controlling the House and Senate, there is increased talk about threats to the Social Security system. After all, this is a socialist program, designed to help the financially weakest among us.
I’ve long maintained that small tweaks, similar to what Congress has already done some 20-25 years ago, will allow the system to remain viable for the next 50 years. By then it is anyone’s guess how long people will be living and expecting to receive benefits.
If you are not yet signed into the system and receiving SSA benefits, get in touch with me. I have access to sophisticated software that will be help you optimize your benefits. As the author says below, Social Security is a complicated program, one that gives you a choice of 97 months during which you can choose to sign up. The difference between the worst and best month can be hundreds of thousands of dollars to you and your family.
By: Jordan DiPietro
Social Security is a complicated program, yet you cannot afford to NOT know everything you should about your benefits. Even knowing this, it can be hard to find the information you need in order to make the most informed decisions for you and your family.
In the following TOP 5 list below, The Motley Fool’s Financial Planning Team reveals five essential, but little known facts, about the Social Security Program and how it will affect millions of Americans. Although most people expect Social Security to be there for them when they retire, they could be wrong – and by then it might be too late.
Number 5: Social Security Is Massive
In 2014, over 59 million Americans will receive Social Security. Among them are:
• 40.9 million retired workers and their dependents
• 10.8 million disabled workers and their dependents
• 6.2 million people receiving survivors benefits
Number 4: The Elderly Could Not Survive Without This Program
Many elderly Americans heavily rely on Social Security; it’s the major income source for most older Americans. In fact, Social Security benefits account for 38% of the U.S. elderly population’s income. Even more important, half of married couples and three quarters of singles receive at least half their retirement income from Social Security.
Number 3: The Workforce Is Having to Support More Retirees
Demographics are not in our favor as fewer workers support more retirees. In 1950 there were 16 workers per Social Security recipient. In 1960 there were 5 workers per recipient. By the year 2033, only 2.1 workers will support one retiree.
Number 2: The Numbers Just Don’t Add Up
Social Security relies on its trust fund in order to cover shortfalls between tax revenue it receives from workers and benefits it pays. The trust fund is projected to run out of money in 2033. Once that happens, retirees can only expect to receive about 75% of the benefits they would have received.
Number 1: The #1 Way to Increase Your Benefits
Every year you wait between full retirement age and age 70 before claiming Social Security benefits boosts the amount you receive by 8%. Those who wait until the age 70 maximum will get 32% more in benefits than those who take them at 66, and 76% more than those who take early benefits at 62. If you can afford to delay benefits until age 70 and if you live past age 82, you will receive more in lifetime income from Social Security than if you had waited until full retirement age.