Millions of seniors have spent years surviving Social Security, but many fear benefits may soon run out.
This event is a misconception, but it is still a major concern among two-thirds of the population.
This is dangerous because it can affect individuals who make the wrong decision about their future retirement.
The myth that social security is running out
With all the reports that the Social Security trust fund is in trouble and the report that the funds will run out by 2034, people are concerned.
The truth is that even if the money disappears, they won’t run out for those who have yet to retire.
Social Security taxes are paid year round and the earnings are used to pay those currently on Social Security.
The earnings that look ahead are enough to cover at least 78% of the benefits that people today look forward to when they retire.
The biggest problem going forward is that there could be a potential drop of 22%.
That’s better than not having social security at all.
How To Eliminate The Fear Of Not Collecting Your Full Social Security?
One of the reasons people are motivated by the idea of fewer benefits is to save more for retirement.
Many may make the decision to retire early for fear that there is nothing left.
This is harmful in the long run and can lead to smaller checks out of fear.
Claiming as early as possible can lead to a 30% reduction in benefits.
By waiting every year past your full retirement age, you can see up to 8% more each year.