Many factors should come into play when deciding when to take your Social Security benefit but doomsday headlines shouldn’t be one of them.

On this episode, you’ll hear how Social Security’s biggest myth is costing retirees a lot of money.

Don’t get caught unaware! Make sure to stick around until the end to hear about a jury duty scam that even I had never heard of.

Outline of This Episode

  • [1:42] Social Security’s biggest myth
  • [8:35] My thoughts
  • [11:09] Why buy bonds if they always go down in value?
  • [18:27] The jury duty scam

Don’t let the doomsday headlines plan your retirement

You’ve probably seen the headlines that the Social Security program is underfunded and set to run out of money in X number of years. The myth is that once these funds are depleted the program and your hard-earned tax dollars will simply disappear.

However, Social Security will continue to receive revenue from payroll taxes, ensuring that benefits will continue, even if they may be at reduced levels.

The numbers

75% of adults 50 and older believe Social Security will run out in their lifetime. This misconception influences many retirees’ decisions on when to claim their benefits. Many retirees claim Social Security benefits as soon as they are eligible, rather than waiting to receive the full benefits they have earned.

29% of beneficiaries claim at the earliest possible opportunity which results in a 30% reduction in benefits. The most common reason for claiming early is the fear that Social Security may run out of money.

Even though experts advise delaying retirement benefits, only 16% wait until full retirement age to claim benefits, and only 10% delay until age 70.

Why you should wait to claim your Social Security benefits

One of the advantages of waiting is that Social Security benefits are adjusted annually for inflation. These cost-of-living adjustments mean that annual increases are more substantial when applied to larger benefit amounts.

While the strong economy has currently aided Social Security, there is a pressing need for reforms to ensure its long-term sustainability.

Misconceptions about the program’s solvency drive many to claim benefits early, often to their financial detriment.

Experts suggest that delaying benefits, even by a few months, can significantly improve your retirement security. Social Security’s annual inflation adjustments further reinforce the advantages of postponing benefit claims.

Understanding these dynamics is crucial for making informed decisions about retirement planning

Resources & People Mentioned

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