The latest forecasts on Social Security funding have people worried that it will run out of money before their scheduled payouts. The question for those approaching retirement age is how secure is it to wait for maximum benefits? A recent Wall Street Journal article noted that according to the latest projection by the Social Security trustees, “the retirement trust fund (will) run dry in 2033.” However, when the trust fund is gone, incoming payroll taxes will still cover 79% of promised benefits. Other media outlets have reported differing numbers. Some headlines would leave you to fear that the whole program is going broke, which is far from true. Yes, personal planning adjustments need to be made; and yes, there may be future actions of Congress to help “fix” the oncoming problem.
Instead of reacting to a targeted headline, focus on creating – or revising – a comprehensive retirement plan that incorporates Social Security as only one of several income streams. Deciding when to claim Social Security is a personal decision, depending on various factors, including health, current financial status, and retirement goals. Having a plan in place can help you gauge the impact of potential reforms on your monthly benefit payments.
Consult a financial advisor to weed through the social media scare tactics and determine the best course of action for your unique circumstances.
Asset Advisors is here to help. Give us a call at 706-650-9900.
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