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Happy Summer Everyone! I’m starting a four-part series discussing a topic that garners both questions and some large concern – Social Security.  At face value it seems like a simple issue – claim my benefits at full retirement age and enjoy a fresh deposit on the 3rd of every month. In reality there are several issues when it comes to SSI – when to claim, spousal benefits, the solvency of the SSI Trust Fund, political meanderings, cost of living increases – you get the idea.  My plan is to break this into digestible sections that include: When should I take Social Security? Will SSI be there when I need it? Could my benefits be reduced? Challenging the conventional wisdom of always waiting until age 70 to claim benefits (the 59 ½ Rebellion at work) The future of SSI – what might change For many, their primary concern centers around timing [...]

Last week we discussed the “right” time to claim Social Security and the personal nature of that decision.  This week’s topic cuts to the core of what many of our clients and friends are concerned about – the long-term solvency of Social Security (SSI).  It is a valid concern and many changes to the system are likely to be made in the future. According to the 2026 EBRI Retirement Confidence Survey, nearly 8 out of 10 workers and 7 out of 10 retirees are concerned the government will make significant changes to America's retirement system. At the same time, only about half of workers are confident Social Security will continue paying benefits similar to today's levels. Our current system relies on a “pay-through” structure.  Current workers (citizens paying Social Security payroll taxes) fund current Social Security recipients. If we have enough workers today, and in the future, paying enough taxes then current benefits could continue unabated.  Any deficiencies [...]

When contemplating one’s Social Security claiming decision, I’ve met with many clients who have strong views about taking their benefits early.  However, many are also intrigued by what the possibilities may be if they defer their benefit until they are age 70.  While the math will generally favor the latter strategy, life has a way of altering our view of “the math!” Take a look at Bill and Betty.  Bill is 62 and has worked as an executive his entire career. Betty worked off and on throughout the years but mostly in part-time endeavors.  Full Retirement Age (according to SSI) is age 67.  They can begin taking benefits now since Bill is 62.  They can also wait until both are age 70.  Their benefits at their FRA (age 67) are $3,000/month for Bill and $1,800/month for Betty.  SSI maximization software will tell them the following: If both take their benefit [...]