Re: Social Security, Now or Later?
My opinion is to consult with a financial planner that you trust- this is a very complicated issue with a lot at stake. You could take benefits now, locking in a lower monthly income for the rest of your life. Or you could wait and get a higher monthly income, risking that you may not live long enough to "break even", if that matters to you at all. After all, when you're gone it don't matter anymore.
If you have a surviving spouse you might consider that impact.
One thing they are going to do, and soon, is to not allow us to take an early income and pay it back if you change your mind and want to delay payments to get a higher monthly amount. People can do that now, but it's going away very soon, if it hasn't already.
While I believe that changes are necessary to shore up the SS system, in my opinion it's unlikely to impact you. More realistically, any changes will happen to those entering the program. It would take only a couple relatively minor steps to keep SS solvent. Delaying the normal retirement age, originally 65, changed to 67 for some of us, and increasing the payroll deduction a bit would go a long way to funding the program. The only thing in my opinion that may affect those drawing income now is to cap or limit any inflationary benefit increases. Those who believe the SS sytem is broke, or going broke, aren't very well informed. It wouldn't be in the anyone's best interest to eliminate the program or let it go bust. That would simply transfer millions of people to welfare programs, not saving a penny.
If you think about it, raising the normal retirment age a year or two make sense. When the program was created, the average Joe retired at 65 and was dead by 70 if that long. I'm in the group with 67 as the normal retirement age, but we're living a lot longer.
And a minor increase in taxes on those paying in would also extend the program's solvency. Either option is political fire, and AARP and other lobby groups rabidly fights any such changes, so the changes never happen. They'll need to sooner or later, but anyone nearing retirement age in the next couple years has little to worry about there.
Social Security was never meant to be the sole source of retirement income, and it never will be. Other retirement income sources, like pensions, IRA's, etc.. are more imprortant to worry about and to fund.
