I get asked a lot of questions about Social Security so I know, there are a lot of misconceptions about Social Security benefits. Let's debunk some of those Social Security myths.
"Hey Nora, isn't Social Security just peanuts?"
No! Far from it. In fact, if you are 70 years old, you could be receiving up to $4,900 a month in Social Security benefits. Over 20 years, that adds up to $1.2 million dollars. Definitely not peanuts.
"Hey Nora, will my Social Security benefit even be there when I need it?"
Likely yes, Social Security will most likely be there when you need it. However, it may look a littler different. Here's the rundown:
We are currently projected to run out of money in the trust fund of Social Security by 2033, leaving 78% of benefits paid out to you that have been promised.
Why am I not concerned? We've been here before!
In the 1980s, under President Regan, the Social Security trust fund was going to run out of money in two years. So what did they do? They extended the full retirement age from 65 to somewhere between 66 and 67 years old.
Well, we are living longer, so they may do that again. Or they may increase the income limit for Social Security.
In any case, Social Security is (and will likely continue to be) a critical building block in your financial strategy. Therefore I will continue to discuss the many ways you can maximize your Social Security benefit now and in the future.