Social Security has provided financial protection for Americans for over 80 years; however, a majority of Americans worry that benefits will run out in their lifetimes. Those fears have intensified as a result of the coronavirus pandemic.
By Josephine Nesbit
See: 5 Things Most Americans Don’t Know About Social SecurityFind: Most Americans Say They Won’t Wait Until 70 to Claim Social Security Benefits, According to Latest Survey
Many Americans (59%) said they feel more discouraged since the onset of the pandemic, reports CNBC and an additional 19% said the pandemic has motivated them to reconsider plans for claiming benefits. At the same time, 11% plan to delay filing and 9% plan to claim earlier.
Social Security is funded through a dedicated payroll tax where employers and employees each pay a percentage (6.2%) of wages up to the taxable maximum. Self-employed individuals must the full percentage (12.4%) of earned wages. The last projection by the Social Security Administration suggested that those funds could run out by 2035, when 79% of promised benefits would be payable, reports CNBC. This projection did not take the effects of the pandemic into account.
See: When Social Security Runs Out: What the Program Will Look Like in 2035Find: 17 Tips To Live Comfortably Off Just a Social Security Check
“The likelihood of it going to zero is as close to zero as you can get,” said Joe Elsasser, founder and president of Covisum, a Social Security claiming company, reports CNBC. He also noted benefit cuts would be less than 25% if they happen at all.
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