THE INS AND OUTS OF SOCIAL SECURITY 4/7

How secure will Social Security be down the line?

For the Baby Boomer generation, Social Security and pensions were touted as entitlements and assurances when it came time for retirement.

Sadly, the reality is both of these former benefits are on the financial endangered species list and those planning their exit from the workforce are left to almost fully fund their retirements.

While Social Security benefits were not intended to fund retirement fully, they were created to provide much needed income support for seniors, especially those with a limited income. Sadly, the amount of these benefits has decreased due to the increasing number of individuals submitting their claims for benefits.

While many falsely believe benefits cannot be claimed prior to the government set retirement age, which is currently 67, this is not accurate. To receive the full amount of Social Security, it is best to withhold a claim until the full retirement age has been reached.

However, if circumstances necessitate submitting a claim due to financial hardship or early retirement, a lesser amount will be awarded for the duration of the claim.

The online Social Security Benefits Planner (SSBP) can provide information regarding the number of credits an individual has earned and whether it is sufficient for benefits to apply.

Credits are earned based on covered earnings per calendar year and averaged out over the duration of an individual’s working years to determine the amount of monthly payment they are entitled to. The minimum number of credits is based on the birth year, with those born in 1929 or later necessitating 40 credits to qualify.

According to the SSBP, the amount of the monthly benefit can increase for each year a delay for the request or application for benefits is delayed with the highest amount awarded at the age of 70. While there is no one age which is best for all to apply for Social Security, individual circumstances should be considered including health, personal finances, and family longevity.

https://www.bestliferates.org/seniors/most-stressful-financial-concerns/
http://www.wunrn.com