Fate of Social security
I always thought I would wait until 70.5 to begin drawing benefits from SS. I am not sure I know how to calculate the pro’s or cons of waiting. Can you shed some suggestions?
Not too mention, the word on the street is that social security will be defunct by 2030–that’s not too far away?
Terry Says
It won’t be defunct; but actuarially speaking it will be unable to pay promised benefits in full. They will either raise taxes on payroll — or delay benefits, or reduce them based on income/assets — or a combination of those things. Or, they will “print” the money!
Either way, I still advise waiting until age70 to collect — right after your 70th birthday — because every year you wait gives you an increase in base benefits of 8% — and your inflation adjustments come on top of that.
