Social Security: 5 Facts You Must Know
By: Jordan DiPietro
Social Security is a complicated program, yet you cannot afford to NOT know everything you should about your benefits. Even knowing this, it can be hard to find the information you need in order to make the most informed decisions for you and your family.
In the following TOP 5 list below, The Motley Fool’s Financial Planning Team reveals five essential, but little known facts, about the Social Security Program and how it will affect millions of Americans. Although most people expect Social Security to be there for them when they retire, they could be wrong – and by then it might be too late.
Number 5: Social Security Is Massive
In 2014, over 59 million Americans will receive Social Security. Among them are:
40.9 million retired workers and their dependents
10.8 million disabled workers and their dependents
6.2 million people receiving survivors benefits
Number 4: The Elderly Could Not Survive Without This Program
Many elderly Americans heavily rely on Social Security; it’s the major income source for most older Americans. In fact, Social Security benefits account for 38% of the U.S. elderly population’s income. Even more important, half of married couples and three quarters of singles receive at least half their retirement income from Social Security.
Number 3: The Workforce Is Having to Support More Retirees
Demographics are not in our favor as fewer workers support more retirees. In 1950 there were 16 workers per Social Security recipient. In 1960 there were 5 workers per recipient. By the year 2033, only 2.1 workers will support one retiree.
Number 2: The Numbers Just Don’t Add Up
Social Security relies on its trust fund in order to cover shortfalls between tax revenue it receives from workers and benefits it pays. The trust fund is projected to run out of money in 2033. Once that happens, retirees can only expect to receive about 75% of the benefits they would have received.
Number 1: The #1 Way to Increase Your Benefits
Every year you wait between full retirement age and age 70 before claiming Social Security benefits boosts the amount you receive by 8%. Those who wait until the age 70 maximum will get 32% more in benefits than those who take them at 66, and 76% more than those who take early benefits at 62. If you can afford to delay benefits until age 70 and if you live past age 82, you will receive more in lifetime income from Social Security than if you had waited until full retirement age.
How one Seattle couple secured a $60K Social Security bonus — and you can too
A Seattle couple recently discovered some little-known Social Security secrets that can boost many retirees’ income by as much as $60,000. They were shocked by how easy it was to actually take advantage of these loopholes. And although it may seem too good to be true, it’s 100% real. In fact, one MarketWatch reporter argues that if more Americans used them, the government would have to shell out an extra $10 billion… every year! So once you learn how to take advantage of these loopholes, you could retire confidently with the peace of mind we’re all after, even if you’re woefully unprepared. Simply click here to receive your free copy of our new report that details how you can take advantage of these strategies.
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