Millions of seniors have spent years surviving on Social Security, but many worry the benefit will soon run out.
This happening is a misconception, yet it’s still a major worry among two thirds of the population.
This is dangerous because it could impact individuals to make the wrong decision about their future retirement.
The myth that Social Security is going to run out
With all the reports that the Social Security trust fund is in trouble and the report that funds will be depleted by 2034, people are expressing worry.
The truth is, even if the funds disappear, they aren’t going to run out for those who have yet to retire.
Social Security taxes are paid throughout the year and the revenue is used to pay those currently on Social Security.
The revenue looking ahead is enough to cover at least 78% of the benefits people today are looking forward to when retiring.
The biggest issue moving forward is that there could be a potential 22% decrease.
That’s better than Social Security not being there at all.
How to offset fears of not collecting your entire Social Security
One thing the idea of less benefits motivates people to do is to save more toward retirement.
Many may make the decision to claim retirement earlier out of fear of there being none left.
This is harmful in the long run and can lead to smaller checks out of fear.
Claiming as early as possible could lead to up to 30% less in benefits.
By waiting each year past your full retirement age, you could see up to 8% more each year.