Social Security is Set to Run Out By 2032

New Social Security says that Social Security funds will be deleted by 2032. In another 6 short years!!! Wow!!! This can make a tremendous impact on retirees, the stock market and economy as a whole. As 55 million Americans receive Social Security retirement benefits. 

Roughly 15% of the US population. Over 40% of those people's Social Security is their primary income in retirement.

If the United States does not fix this can cause catastrophic consequences not just on people's lives who rely on Social Security. But as a country as well. As we are dependent on those people to use that money to pay electric bills, mortgages, groceries and to eat. 

So what Happens Next!!!

So if Congress does nothing we could possibly see over 20% haircut for Social Security Benefits. As; Social Security would rely on revenue that comes in to pay for benefits. The primary way they receive income is from payroll taxes.

Over the last week I have had numerous clients say should I take my Social Security now since it won't be there? My reply is, "no". The 20% haircut would be based on the income you receive. So, if you take your benefits at 62 instead of maxing it out at 70 years old. It would be based on 62 year old income not the 8% automatic increase you get every single year until you turn 70.

So, when is the best time to take Social Security?

I saw it depends. It depends on your overall health, financial situation and overall financial plan. It is best to talk to your advisor or me on when is the best time to take it.

If you would like an analysis on when is the best time to take your social security or just looking for an advisor. Schedule time with us here.