Will Social Security be there for you?
We think so. First, to describe the concern: On the current path, Social Security will only be able to pay out 78% of projected benefits starting in 2032.
Why are we optimistic? The Baby Boomers (born 1946–64) are a huge population, and over 70 million Americans currently receive Social Security benefits. Cutting checks for current retirees would be political suicide, and politicians of both parties know it. In fact, outright cuts to benefit checks for those 55+ have never survived contact with Congress.
What’s most likely is that changes fall on younger workers: a gradually higher retirement age, a higher wage cap subject to payroll tax, or adjusted benefit formulas, phased in over decades. To size the problem, the Trustees estimate that raising the payroll tax you see on your paycheck from 6.2% to 8.4% (matched by your employer) would fully fund the program through the end of the century. Not a fun change, but that alone fixes the problem. Congress has a long history of waiting until the last minute and then acting. We’d expect the same here.
Finally, don’t let the headlines push you into claiming benefits early “before they’re gone.” Taking Social Security now means living on less for the rest of your life. Your benefit grows meaningfully each year you wait (up to age 70), and that larger payment is inflation-adjusted, lasts a lifetime, and can carry over to a surviving spouse. Claiming early out of fear trades a permanent, guaranteed raise for temporary peace of mind. For most people, that’s a poor trade.
Every retirement plan is different. If you’d like to discuss the best Social Security claiming strategy for your situation, we’re here to help. Reach out by phone, email, or schedule a meeting. We’d love to hear from you!
