Depending on where you get your information you may or may not be convinced that Social Security will be around for much longer.
- There are many myths about Social Security that people take for truths, for example many believe that there will be no Social Security left by 2036. But the reality is that although the surplus may run out by that time if nothing is done, the current payroll taxes would still be enough to fund 77% of all the promised benefits for future generations.
- People believe that Social Security only gives you what you put in. This is not true because the money that you are putting in today is paying for the people that are receiving the benefits today. And your total amount of future benefits depends on how much you earn, when you retire and how long you are expected to live.
- There are rumors that younger generations would be better off if they did not pay into Social Security, but instead invested that same amount of money, ever year of their working life, into stocks and bonds. However, you would need to invest far more into these stocks and bonds than what you would be contributing to make this work; not to mention that you would have to be sure never to tap into these resources or to skip a year of investing.
Social Security provides assistance to young and older people alike. It supports qualifying widows and widowers with children, and also aids orphans. The Social Security administration is doing all that it can to keep this benefit around for citizens, but to do that we are seeing that people must make sacrifices. For the second year in a row, retired and disabled Americans are not able to get Social Security benefits increased.
There are a few tips that will help you get the most out of your Social Security benefits:
- Wait as long as you can to begin claiming Social Security. You can begin claiming it between the ages of 62 and 70, but the closer to 62 you start, the smaller your checks will be.
- If you are married, you can chose to accept benefits based on your income or equal to 50% of your spouse’s benefits.
- If you already filed your claim for Social Security, and would like a higher benefit amount, you are able to file Social Security Form 521, Request for Withdrawal of Application. This will require you to pay back all of the benefits you have received, but when you reapply, you
are able to get your higher amount for waiting until you are older.
Social Security can be a confusing topic for people nearing their retirement age. This is just a brief overview of the issues relating to the current Social Security laws. If you need more help understanding Social Security and how laws may impact your benefits, please give us a call!