Will the Trend of Waiting to File Reverse in the Years Ahead?
While age 62 remains a very popular age to file for Social Security benefits, with more than 60% choosing this option just a few years ago, there has been a statistical trend away from early filing. As more and more folks age into eligibility for benefits, recent statistics have shown that a growing number of new filers are waiting until their full retirement age to begin collecting benefits, thus reaping a larger monthly payment.
But is this trend likely to continue? The Motley Fool’s Sean Williams thinks not. “But as time passes, my suspicion is we’ll again see this trend reverse, with more retirees choosing to claim earlier rather than waiting,” suggests Williams in a post today on www.fool.com. His article cites the much-publicized projection that Social Security will exhaust it’s Trust Fund reserves by 2034, triggering an across-the-board cut in benefits. The uncertainty of when (or if) legislative action to address this projection will occur is, in Williams’ opinion, likely to cause more seniors to claim benefits early. Read his post here…
The Sean Williams post underscores the need for congressional action to resolve Social Security’s long-term solvency problem, the sooner the better. It is not a self-correcting problem, and inaction needs to be viewed as tacit endorsement of the substantial benefit reduction fourteen years from now (sooner, if economic conditions worsen). The Association of Mature American Citizens (AMAC) is one of the leading organizations fighting for a resolution of the solvency issue, and has been actively advocating for legislative attention for a number of years. AMAC’s “Social Security Guarantee” is a balanced plan to modernize the program in a manner that ensures minimal disruption, all without the need to raise taxes on workers. Check it out here, and know that the issue is one that demands attention sooner rather than later.
Notice: The first link provided above connects readers to the full content of the posted article. The URL (internet address) for this link is valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the link’s validity. Also, the opinions expressed in these postings are the viewpoints of the original source and are not explicitly endorsed by AMAC, Inc.; the AMAC Foundation, Inc.; or socialsecurityreport.org.