Are you concerned about the future of Social Security benefits in America? If so, you’re not alone. Since the election, we’ve had several clients question whether or not Social Security benefits will be impacted or eliminated in the near future.
According to Nationwide, seventy-two percent of adults worry that Social Security will run out of funding in their lifetime.
While headlines about Social Security may be causing fear and leading individuals to claim their benefits earlier, it is unlikely that these federally funded benefits will disappear. At SBS, our Financial Advisors aim to equip you with information and resources that can help you better prepare for your future finances. We find that this article, titled “Is Social Security Going Away?” from Hartford Funds provides an insightful look into the future of the Social Security program.
Some key points from this article include:
- Is Social Security really going away? Even in the unlikely event that Congress doesn’t act before funds are depleted, Social Security wouldn’t go bankrupt. Ongoing Federal Insurance Contributions Act (FICA) payroll tax revenue would still fund about 80% of promised benefits indefinitely.
- The Pitfalls of Panic. A common misconception is that these payments will automatically increase to 100% of the full retirement benefit amount when full retirement is reached. This is not the case.
- Identifying other retirement income sources. Your financial professional can help you identify your retirement-income sources in addition to your Social Security. This will help you determine how each one fits into your overall retirement income plan.
“While Social Security funding may be strained, the program isn’t going away, and filing early out of fear can significantly reduce both individual and spousal benefits. Taking an inventory of your retirement-income sources can help provide valuable perspective.”
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