Q & A
Ask Rusty – Should I collect SS now or wait two years until age 70?
Dear Rusty: I am 67 and 9 months old, collecting a modest SS survivor benefit with plans to collect my own much larger benefit at age 70. I was confident this plan was a good one; but recent turbulent events make me nervous that cuts could come to Social Security at any time without warning. Would it be prudent to file for my own Social Security as soon as possible so that my benefit might be “grandfathered” in before any sudden and drastic cuts occur? I do not generally panic, but these are unprecedented times. I would be quite comfortable with the benefit listed on my 2024 statement for my current age; I was just hoping to maximize the benefit by waiting.
When I go to the Social Security website to view my 2025 annual statement to see the personalized monthly retirement benefit estimates for ages 68, 69, and 70, that section no longer shows. This omission makes me uncomfortable. Can I find out what my current benefit estimate would be for ages 68, 69, and 70? Or should I just rely on the 2024 statement? Signed: Nervous in Portland
Dear Nervous: Please do not be nervous that recent “turbulent events” pose a threat to your future Social Security benefits. Those events do not, in any way, jeopardize your future Social Security benefits, because Social Security is completely separate from all other federal political issues and finances. The primary problem with Social Security became an issue long before the current administration took office.
The Trustees of Social Security have been warning Congress for decades that Social Security’s finances require Congressional attention. The fact is that Social Security revenue (as predicted decades ago) became insufficient to pay all benefit obligations in about 2021. Since that time, money from Social Security’s reserved funds (Trust Funds)has been used to pay full benefits to all. In 2020, there was nearly $3 trillion in SS reserved funds, but that has now dwindled to about $2.5 trillion as reserves are used to supplement SS payments. And that problem continues. The Trustees of SS now predict that the reserves will be fully depleted in about 2032, at which time – lacking program reform by Congress – Social Security will be forced to pay out only what it receives in revenue. And that would mean an estimated cut of about 23% to everyone’s monthly SS benefit. In the unlikely event that happens, wouldn’t a 23% reduction to your larger age 70 benefit be better than a 23% cut to your lower age 68 benefit?
No one wants those cuts to happen – least of all politicians – because it would amount to political suicide (seniors are, after all, a very large voting bloc). Thus, we believe that Congress will act to reform Social Security to prevent any general benefit cuts from happening. It will, however, require Congressional bipartisanship because the reforms needed for Social Security are likely unsavory to some. Those reforms may include SS tax increases and changes to the basic structure of the SS program to align it with today’s demographic reality. The program needs reform, which Congress has, unfortunately, neglected to provide for many years. And this neglect will likely also continue, at least through the forthcoming mid-term elections. It seems the nature of Congress is to wait until the last possible moment to offer corrective legislation.
Here’s what to keep in mind: Congress already knows how to reform Social Security to avoid any future benefit cuts – they just lack the bipartisanship to accomplish that reform. For our part, the Association of Mature American Citizens (AMAC) has offered to Congress a commonsense reform plan via its “Social Security Guarantee (SSG).” AMAC’s proposal has received a positive reception in Congressional circles, and we are optimistic that the proposal will provide financial stability to the program for generations. AMAC continues to advocate for SS reform in Washington, D.C. on a regular basis, even more intensely as the depletion of the SS Trust Funds grows closer.
We do not suggest changing your strategy for claiming Social Security benefits based upon fear the program will cut benefits. That’s because it’s unlikely that all benefits will be cut because we believe Congress will eventually enact reform. And even in the unlikely event that Congress neglects to reform the program by 2032, the percentage of reduction to a higher monthly SS benefit amount would be better than a similar reduction to a lower benefit amount. In other words, your original plan is still a prudent one.
Regarding your question about your estimated benefits, I expect your most recent SS statement didn’t include future benefits because you are already collecting SS survivor benefits. You can contact SSA at 1.800.772.1213 to obtain the future SS retirement estimates you seek.