Early Social Security Claim Pondering: Is it Smart to Cash In Now Before Potential Collapse? - Contemplate Rusty
The United States is facing the impending financial dilemma of Social Security, with experts predicting that the programme may run out of funds by 2033 unless Congress takes action to reform it. Currently, Social Security has about $2.7 trillion in reserved funds, but this will not last forever.
Congress is expected to address this issue, and the Foundation, a non-governmental organization, has been providing potential solutions to various members of Congress. However, currently, there is no specific information indicating which parties in Congress are considering the Foundation's proposals.
One important factor to consider when deciding when to claim Social Security is the Social Security's Annual Earnings Test (AET). Claiming Social Security early, before full retirement age, means the AET will apply. This test may reduce your benefits if you earn above a certain income threshold.
The decision to claim Social Security should be based on individual personal circumstances. Factors to consider include life expectancy, financial need, and marital status. For instance, if you have a shorter life expectancy or do not need the benefits immediately, it may be beneficial to delay claiming Social Security. Conversely, if you need the benefits now and expect a shorter life span, claiming early may be the best option.
It's essential to note that Social Security will not go bankrupt. Even if Congress fails to reform the programme, beneficiaries would still get about 79% of their monthly benefit starting in about 2033/2034. However, this means a significant reduction in benefits, with about a 21% cut in everyone's benefit if the Reserves balance were to be fully depleted, resulting in a shift to a 'cash basis.'
The Foundation's staff are trained and accredited by the National Social Security Association (NSSA). However, the Foundation does not provide legal or financial guidance. Instead, it presents the opinions of its staff to help individuals make informed decisions about Social Security. It's crucial to consult with a financial advisor or legal professional before making any decisions regarding Social Security.
If you have questions about Social Security, you can visit the Foundation's website at amacfoundation.org/programs/social-security-advisory or email [email protected].
The Foundation is not affiliated with or endorsed by the Social Security Administration or any other governmental entity. It is an independent organisation providing resources and advice to help individuals navigate the complex world of Social Security.
In conclusion, the future of Social Security is uncertain, and it's essential to make informed decisions about when to claim benefits. The Foundation offers resources and advice to help individuals make the best decisions for their personal circumstances.
