Receiving Social Security retirement benefits at 62 is possible. However, it implies getting about 30% less every month. Therefore, it may not be sensible if you rely on this money to make ends meet.
What is more, the Social Security Administration has announced that it will not have enough money to pay 100% of benefits in 2035. That is the year when 51-year-olds, born in 1973 turn 62. Needless to say, this is bad news, but not all hope is lost.
COULD SOCIAL SECURITY’S PREDICTION IMPROVE?
In fact, it has already improved after last year’s Board of Trustees Report. SSA expected to cut benefits in 2034 a year earlier than in 2024. Hence, it is good news that cuts have been delayed.
Besides, the situation could continue improving just like this year. If the U.S. economy is stronger in 2024 and in the upcoming years, 51-year-olds and other generations may not have to worry about cuts.
Another thing that has helped Social Security funds is the fact that there are more Americans working. Having low unemployment rates is essential.
WHAT OTHER THINGS COULD DELAY CUTS FROM SOCIAL SECURITY FOR 51-YEAR-OLDS WHO FILE AT 62 IN 2035?
The Government could also do something about it. Since no measures have been dealt with so far, workers need to rely on higher job and wage growth to provide more money to Social Security Trust Funds.
It will be essential that unemployment rates continue low and Americans have higher wages so they can pay more taxes to the Administration. If the situation does not improve SSA could only pay 83% of benefits.
Another positive aspect is the fact that this figure was about 75% in the previous Report from the Board of Trustees. More and more seniors rely on Social Security to avoid poverty and to live with dignity, so let’s hope the U.S. economy stays strong for many years to come.