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How Secure Are Your Social Security Benefits?

March 4, 2015

That is a good question, and the answer may depend on who you ask. Unfortunately, rather than provide straight answers, our elected officials use it as a political football. We hope to provide some much needed clarity on this issue, as all of us are impacted by Social Security in some regard.

First, some good news: Without making any changes to current retirement ages, funding and benefits, Social Security has enough reserves to last until the year 2033. Once depleted, annual Social Security receipts would be sufficient to pay only 77% of scheduled benefits. The overwhelming likelihood is that Congress will enact legislation between now and 2033 to tweak the existing system and make it more fiscally able to endure a new and a different reality from when the original law was passed nearly a century ago. Today there are 45.1 million Americans over the age of 62 and by 2033 there will be 77.4 million. Additionally, 51% of today’s workforce has NO private pension coverage and 34% no savings set aside for retirement.

What does it all mean? Social Security may be more important to us and our lifestyles in retirement than we care to admit. One way to prepare for these changes is to understand your opportunities NOW and get smart about your options. Below is just a small sampling of why this can be so beneficial:

Did you know:

If you wait until you are 70 to receive your benefits you could receive up to another 34% monthly?

If a lower earning spouse claims reduced social security benefits at age 62 on her own earning record instead of waiting until her husband claims his benefits, that her benefits are permanently reduced below the 50% maximum option of spousal benefits?

Ex-spouses may still be able to claim benefits if the marriage lasted more than 10 years and if she waits until age 60 or older to remarry?

A public pension reduces your ability to receive a full survivor benefit, if your spouse dies?

If you feel out of touch with the 2,800 rules that govern our social security benefits, make an appointment today for a  Social Security Analysis. We have reason to believe Social Security will be around for a long time but will likely go through some changes.

The first 10 clients who make an appointment for a Social Security Analysis will receive a complimentary laminated “Baby Boomer’s Guide to Social Security.”

Contact SVHS

The certified public accountants (CPA) and advisors at Sadd Velazquez Higashi Shammaa are ready to assist you with all of your accounting and consulting needs. Contact us today and we will connect you with the professional you need.

Sadd Velazquez Higashi Shammaa, LLP
330 North Brand Blvd., Suite 200
Glendale, CA 91203

Phone: (818) 547-5701
Fax: (818) 547-5708