Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.
For years, however, the amount coming in from workers' payroll taxes hasn't been enough to fully fund benefits, so the SSA has had to dip into its trust funds to avoid reducing beneficiaries' monthly checks.

The longer you wait to claim (up to age 70), the more you'll receive each month. All rights reserved. That means benefits could be reduced sooner than 2034, and the cuts could be deeper than expected.The stock market has been booming over the last month, despite the fact that the country is in a recession and the number of COVID-19 infections continues to climb. The best reason to claim Social Security benefits during a recession. Those bigger checks can provide greater financial security in retirement, especially if your savings won't go as far as you need them to.Because nobody knows how long this recession will last, it can be tough to plan for retirement right now. Not only could the trust funds be depleted sooner with less money coming in from payroll taxes, but if payroll taxes are permanently reduced the SSA also won't have as much to pay out in benefits once the trust funds run dry. Quotes delayed at least 15 minutes. 3 ways a recession could affect Social Security and your retirement Prepare for all the ways a recession could affect your savings and future benefits They make decisions based on what they’ve heard or what they’ve read in a magazine. So, does workers’ compensation affect your Social Security Retirement Benefits? The increase was modest, however, because unemployment growth at older ages was largely offset by growth in the number of older adults choosing to work longer. Whether you're nearing The Social Security Administration (SSA) relies primarily on payroll taxes to fund benefits.

There are a lot fewer people paying payroll taxes right now, and if businesses have to close once again to mitigate the spread of the virus, more layoffs could be on the way. You'll receive smaller checks by claiming earlier, but if you need the money and don't think you'll be able to find another job anytime soon, Social Security can make it much easier to afford early retirement.On the other hand, if you are able to continue working, you might opt to delay claiming benefits by a few years. Half of women and more than half of men now wait until after age 62 to claim their retirement benefits, the largest proportions in decades. That means the SSA may need to take more than expected from its trust funds, and Social Security recipients could see benefit cuts sooner than 2034.President Trump is also proposing payroll tax cuts as part of the next coronavirus stimulus bill, which could exacerbate Social Security's problem. But by investing more conservatively overall, your savings won't be decimated by a stock market crash.If you lose your job and are forced into an earlier-than-expected retirement, you may decide to begin claiming benefits as early as possible so you won't need to survive on your savings alone. The answer might be more complicated than a simple “yes” or “no.” To start, let’s look at how retirement benefits are computed. ©2020 FOX News Network, LLC. Social Security retirement claiming grew in 2009 as unemployment soared. The recession may make claiming Social Security benefits even more complicated. With a recession-proof plan, it doesn’t mean the recession won’t affect you. However, If you're close to retirement age, a market downturn could force you to rethink your plans.
Once the trust funds run dry, the SSA will only be able to pay out approximately 76% of projected benefits.The mass layoffs triggered by COVID-19, however, could deplete the trust funds even sooner. Let’s look at an example. Those bigger checks can provide greater financial security in retirement, especially if your savings won't go as far as you need them to.Because nobody knows how long this recession will last, it can be tough to plan for retirement right now. For example: one easy trick could pay you as much as $16,728 more... each year! There are a lot fewer people paying payroll taxes right now, and if businesses have to close once again to mitigate the spread of the virus, more layoffs could be on the way. If you do lose your job and your savings take a hit, you might have no choice but to retire earlier than expected and make financial sacrifices.One thing you can do right now, though, is double-check your It's still a good idea to continue investing some money in stocks even after you retire, because that will help your savings grow faster. Not only could the trust funds be depleted sooner with less money coming in from payroll taxes, but if payroll taxes are permanently reduced the SSA also won't have as much to pay out in benefits once the trust funds run dry. Three ways the coronavirus-caused recession could affect Social Security and your retirement As you're planning for retirement, be sure you've thought about how the recession could affect … All rights reserved. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. But by considering the ways the recession could affect your savings and your future Social Security benefits, you can go into retirement as prepared as possible.If you're like most Americans, you're a few years (or more) behind on your retirement savings. A similar rule, the Government Pension Offset (GPO), affects spouses, widows and widowers who collect spousal or survivor benefits from Social Security and also receive pensions from federal, state or local government jobs that did not withhold Social Security taxes.


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