If You’re On the Fence About Filing Early, Read This! - Investor's Business Daily; AMAC
The constant barrage of media alarms on Social Security’s impending insolvency drives many folks aging into benefit eligibility to take the plunge before their full retirement age. While they may or may not fully understand the long-term consequences of this decision — the permanent reduction in monthly benefit payments — the fear of an across-the-board slashing of benefits is enough to prompt a decision to “take it while it’s there.” Most financial advisors counsel their clients to weigh factors beyond the short term when considering their filing options — factors like longevity, availability of other economic resources, and the probability that congressional action will avert the insolvency catastrophe.
To be sure, the decision to claim retirement benefits can be a daunting task. After all, it’s a permanent choice you’ll need to live with for the rest of your life. Investor’s Business Daily’s Adam Shell, in a post yesterday on their website (click here to read), provides some guiding thoughts on how to make this choice, including commentary on “doing the math” as part of a final claiming decision. Shell discusses the implications of filing early and the benefits of delaying filing until age 70, and provides a mini-case study illustrating the impact of a benefit cut on monthly benefits in a hypothetical situation.
Shell’s post also discusses the issue of Congress potentially taking action to correct the long-term funding problem before the point of insolvency. Quoting Martha Shedden, president and co-founder of the National Association of Registered Security Analysts, Shell notes, “It’s highly unlikely that nothing is done.” Many ideas for congressional consideration have been developed, with hundreds of formal proposals cataloged across nine separate topical areas and reviewed by the Social Security Office of the Chief Actuary. In addition, many advocacy organizations have contributed to the growing body of knowledge and suggested corrective measures, including the Association of Mature American Citizens (AMAC). AMAC has also conducted years of careful research into Social Security’s long-term financial plight. Alongside this research, the AMAC Foundation has built an extensive body of knowledge on Social Security’s operations and the application of its rules and regulations to real-life day-to-day situations facing the American Public. In fact, the AMAC Foundation’s accredited Social Security Advisory Service regularly assists thousands of seniors each year as they navigate these rules and regulations.
AMAC’s work in this area has resulted in the compilation of its Social Security Guarantee proposal, a set of interlocking recommendations intended to resolve the projected funding shortfall and preserve the program for at least the next generation of beneficiaries. The full proposal can be viewed on the AMAC.us website.