"The threat of Social Security cuts isn't as dire as it seems: The risk of benefits running out was a major concern, but I realize now that the threat of this sounds scarier than the reality. The Social Security Administration is always going to be able to pay out benefits from current revenue, so even if the trust fund runs dry, the system could still pay out somewhere between 75% to 80% of promised benefits."
"Odds of more lifetime income are better if you delay: Studies have repeatedly shown that claiming at 70 maximizes your odds of getting the most lifetime benefits. People are simply living longer than they did when the system was designed, which means the early filing penalties and delayed retirement credits that were supposed to equalize out lifetime benefits for early and late claimants are no longer effective."
Claiming Social Security at age 62 was initially planned due to concerns about the trust fund and inflation. However, research revealed that the threat of benefit cuts is overstated, as the Social Security Administration can still pay 75% to 80% of promised benefits even if the trust fund depletes. Additionally, studies indicate that delaying benefits until age 70 significantly increases the likelihood of receiving more lifetime income, as people are living longer than when the system was established.
Read at 24/7 Wall St.
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