Perspectives on Social Security: Some Likes, and Some Dislikes - Kiplinger
For many seniors and future retirees, America’s Social Security program is an important–some would say critical–component of their financial retirement planning. In fact, some surveys indicate that about half of retirees place a heavy reliance on their Social Security benefits for retirement security, In fact, the SSA reports that “(a)mong elderly Social Security beneficiaries, 21% of married couples and about 45% of unmarried persons rely on Social Security for 90% or more of their income.* Compounding this reliance is the program’s sheer complexity, as noted by Kiplinger contributor Michael Aloi in a post on their website.
Complexity aside, though, Aloi finds there’s substantial reason to appreciate Social Security’s contribution to the American way of life, beginning with the lifetime duration of benefits and the fact that Social Security supports a variety of family benefits including, for example, spouses and dependent children. The fact that benefits are reliably backed by government securities is another plus, Aloi says, as is the inflation protection built into the system.
But as Aloi points out there are things to be not so fond of, also, beginning with–again–the program’s inherent complexity, the discounting that takes place for early retirees, and the nasty benefit taxation issue facing seniors, to cite just a few. Since he is a Certified Financial Planner, Aloi stresses the importance of careful planning to combat these dislikes and to take full advantage of the benefits available.
On the complexity issue, also be aware that the AMAC Foundation offers a free-to-the-public advisory service to help seniors navigate the rules and regulations governing participation in the program. Learn more about this service here…
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