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In new reporting, it is estimated that Social Security will be able to pay for full benefits for the next 12 years. This can create concern for those that are planning to depend on Social Security payments in retirement. Retirement advisor Thomas Reilly of Strategic Wealth Designers joined us on the newscast to discuss the financial outlook of Social Security.
“There is an annual government report that projects how long the Social Security trust will last,” Reilly says. “These funds include retirement, survivors, and disability benefits. The most recent report anticipates funds being depleted a year earlier than expected prior to the pandemic. Right now, we have more people taking Social Security benefits than are paying into it.”
Funds for Social Security were running low prior to the pandemic. However, the COVID-19 pandemic only aggravated the outlook for Social Security. The outlook for Medicare looks effectively the same as the previous year. Although tax revenue declined as a result of the last year, less money was spent from Medicare on elective care.
“Don’t make a rash decision as a result of this Social Security news,” Reilly says. “While we don’t know exactly what will happen with the Social Security program, it’s unlikely that benefits will just disappear. Taking Social Security earlier than your full-retirement age will result in a reduction in monthly benefits. Working with a financial planner that specializes in retirement can help you plan for the future.”
Factors that will determine when you may decide to take Social Security include other forms of retirement income, life expectancy, and how long you plan to work. To see additional stories surrounding business and economic news for Denver area, visit https://KDVR.com/Money and if you have a question for Thomas send an email to firstname.lastname@example.org.