Surely you’ve heard that Social Security relies on dwindling money to pay out benefits.
According to a study from Boston College’s Center for Retirement Research, media headlines have a significant impact on your perception of the situation.
According to the Center for Retirement Research, this can affect how early you intend to claim your retirement benefits.
Trustees of Social Security provide an annual report on the state of the program’s finances. Negative headlines have become commonplace.
For instance, consider this year. As the Covid-19 pandemic raged on for months, the 2021 trustees’ report was released in August, months later than usual.
Just one year earlier than previously predicted, the pandemic pushed the depletion timetable forward.
There are still only 13 years left in the combined trust funds used to provide retirement, survivor, and disability payments. 78 percent of the guaranteed benefits will still be paid out at that point in time.
That’s because payroll tax contributions will continue to fund the program.
The press coverage of the statement has a significant impact on the public’s perception of the future of Social Security.
These findings show that media coverage of the trust fund makes many workers fear an unreasonably severe loss to future Social Security benefits,” stated researchers at the Center for Retirement Research in the report.
According to experts, most people should wait to take their retirement benefits until after the publishing of this year’s trustees report. If they’re in good health, have enough money, and their decision doesn’t negatively effect their spouse, they’ll be able to do so.
At the age of 62, some people may be tempted to claim their retirement benefits.
Because of this, Edward Jones’ Scott Thoma, a senior financial analyst, estimates that beneficiaries will see a reduction in their monthly benefits of 25 percent to 30 percent if they begin receiving payments before reaching full retirement age.
If you have reservations about the program in 12 years, don’t file early, according to Thomas. When deciding whether or not to file for bankruptcy, you should constantly consider your unique financial circumstances and needs.
When it comes to the SS program, Larry Kotlikoff, an economist at Boston University and president of Economic Security Planning, believes that waiting is still a good idea.
How quickly should people claim their Social Security benefits? Not at all, according to Kotlikoff.
According to Kotlikoff, measures like tax hikes are more likely because benefit cuts are politically undesirable. If benefits were reduced by 25% in ten years, people would still be better off waiting, he argued.
To learn more information about Social Security Disability Benefits and tips on applying, disability help provides everything you need to know to find out if you qualify and to get a successful application.