Yes…you read the title right. A baby boom can save the Social Security trust fund.
3 Assumptions That Could Change Everything
On an annual basis, the Social Security trustees release their report detailing the solvency of the Old Age Survivors Disability Insurance program, also called the OASDI or simply…the social security trust fund.
You’ve probably heard about the OASDI being empty by the year 2034, and that there will only be enough tax revenue to cover 75% of the benefit payments.
The numbers of Americans who are working beyond 65 are increasing. Since many of these workers are covered by healthcare plans at their jobs, it causes many of them to wonder if they need to file for Medicare part B. In this video I clearly lay out who does, and does not, need to file for Medicare at 65.
On an annual basis, the Social Security Adminstration changes a few things that impact benefit payments. The annual cost of living adjustment is one of the most notable, but there are other things that are equally important. In this video I lay out the three most important changes for 2019.
Recently, I started studying for my private pilot’s license. As I’ve learned about the mechanics of skillfully piloting an airplane, I’ve also realized that there are many similarities between flying a plan and planning for retirement.
Take this as an example: when you fly long distances, making constant adjustments is not optional… it’s a requirement. If you fly just one degree off course for a short 300 mile flight, you’d miss your target by 5 miles!
Getting where you need to be, when you need to be there, requires precise navigation and constant adjustment. Planning for retirement is no different.
Mistakes made when you are close to or at the point of retirement could be irreversible. This is especially the case when you are making decisions about Social Security.
One of my most trusted mentors often tells me, “Big doors swing on little hinges.” The small decisions you make, when stretched over long periods, can have big consequences.
Here are the five 5 Social Security mistakes that can cost you dearly when you retire.
Making a video that covers Social Security Survivors benefits is a project that I’ve put off for several months. However, I went to FinCon, a financial media conference, and realized that I needed to get off of my laurels and get some of this helpful content produced. I hope you find this video useful.
I’ll put a transcript below if you want to read along.
Believe it or not, there are some good reasons to file for early Social Security benefits. But those only apply in some circumstances — and more often than not, people’s reasons to file early can be downright stupid.
That sounds harsh, but this about it: we’re talking about maxing out your available retirement income so you can make the most of this stage of your life. You don’t want to make a mistake here, especially a silly one you could have easily avoided.
Still, even when I give people the information they need to know about filing appropriately for their specific situation, some people just don’t get it.
Fact or fiction: Filing for Social Security at 62 is always a bad idea.
Most of the information and “advice” you find online makes the case that delaying your filing is always the right thing to do. There’s good reason for that: filing for Social Security at 62 means taking reduced benefits.
But it’s not true that filing at 62 is always a bad idea. This decision is highly dependent on your own personal set of factors.
You may hear people say things like, “you should always wait until you’re full retirement age for file for maximum amount of benefits.” Filing later for Social Security benefits does mean maximizing income in most cases — but that doesn’t apply to every situation.
In fact, there are five specific circumstances when I think filing early makes the most sense. Here they are.
If you’ve happened across some of the headlines about the future of Social Security, you may be thinking we should really be talking about the lack of a future for these benefits.
Follow the news around this topic for any amount of time, and you’ll be hit with some alarming claims. Here’s just a quick sampling:
“The entire Social Security program will be fully depleted…in 2034.”
“There’s a 0% chance that the government will be able to honor its existing commitments.”
If these warnings have you doubting the availability of Social Security funds to supplement your retirement income, you’re not alone.
A 2016 Transamerica study found 77% of employees felt the same way. American workers reported feeling worried there would be no money left by the time they could leave the workforce and draw their benefits.
But here’s the thing: these concerns may be unfounded. Is there a legitimate reason to feel alarmed? Are the headlines overdramatic, or do they serve as legitimate warnings?
To answer these questions, you need to understand the history of the Social Security Administration and its benefit program. From there, you can make a more informed, educated prediction for what the future of Social Security will look like — and more importantly, how you can plan for that future.