“Social Security on the Brink: Will Your Benefits Be Slashed?”

Social Security isn’t shattered, but it’s shaky. The latest report on Social Security predicts that the combined retirement and disability trust fund reserves will go broke in 2035, putting many Americans on edge, especially those nearing retirement. The trustees report projects insolvency one year later than last year’s estimate, thanks to a strong economy and wage growth boosting payroll tax payments. However, without a fix, beneficiaries could see a 17% cut in benefits.

Many experts are advising their clients to assume a reduced benefit and save more in their retirement accounts. Some are already assuming they won’t receive anything from Social Security. Others recommend waiting until age 70 to start collecting benefits to ensure a higher payment for life. The responsibility is on individuals to save and invest for retirement, rather than relying solely on Social Security.

While fears of losing Social Security may drive some to claim benefits early, it’s not advisable as it will reduce monthly checks. Delaying benefits until age 70 is a better option for those in good health with other sources of income. However, some individuals, like those in physically demanding jobs, may have no choice but to retire early and take Social Security as soon as they can.

Congress has less than a decade to fix the shortfall facing millions of Americans who rely on Social Security. It’s crucial for lawmakers to take action to ensure the program’s sustainability for future generations. As the debate continues, individuals are urged to plan for a potential reduction in benefits and take control of their retirement savings. By saving, investing, and making informed decisions about when to claim Social Security, individuals can better prepare for their financial future.