Social Security Fears Go Viral: Should You Claim Early Like Dave Ramsey Says?

Social Security Fears Go Viral: Should You Claim Early Like Dave Ramsey Says?

Social Security Fears Go Viral: Should You Claim Early, As Dave Ramsey Says?

Americans are increasingly afraid of not receiving the Social Security benefits they have paid into throughout their careers.

According to the Associated Press, Social Security will not be able to pay full benefits to recipients starting in 2035. At that rate, it will only be able to pay 83% of benefits unless the government changes its policy .

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The Social Security Administration (SSA) explains that Social Security taxes are intended for already retired people, eligible disabled people, survivors of deceased workers, and dependents of beneficiaries. They are not paid into a personal account that contributors could receive upon retirement.

Amid concerns that contributors are not receiving adequate Social Security funds, financial guru Dave Ramsey recommends that Americans are claiming their Social Security benefits sooner. On the other hand, other financial experts urge them to wait as long as possible to get a bigger monthly salary.

Ramsey says the best strategy for most Americans is to start claiming Social Security benefits at age 62. He believes this approach will allow individuals to access their money sooner, allowing them to invest it in mutual funds to achieve potentially higher returns.

Ramsey says Americans can overcome falling monthly payments by investing early and capitalizing on their investments.

He emphasizes that the social security system is fundamentally flawed and unreliable, describing it as a “broken system” and a “disaster”. Ramsey urges people not to make this their primary source of retirement income.

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According to Ramsey, the uncertainty surrounding the future of Social Security makes it prudent to take the money as soon as possible and make it work for you through smart investments.

Contrary to Ramsey’s advice, most financial experts recommend waiting until full retirement age — typically 66 or 67 — or even delaying until age 70.

Delaying benefits results in a much larger monthly payment — up to 132% of the monthly benefit if you wait until age 70, according to the SSA.

Financial planners say that for people who are healthy and have a longer life expectancy, waiting can provide a more financially stable future. Larger pending monthly wages can help cover rising health care costs and other expenses in retirement.

Many people worry about whether Social Security will be available when they retire. As the system faces challenges, SSA Chief Actuary Steve Goss is assuring Americans that despite the risk of benefit cuts, Social Security trust funds will not run out of money.

According to Ramsey’s advice, fear of this program’s demise is reason enough to claim as soon as possible to mitigate the risk of potential future reductions in Social Security benefits.

So, should you claim early?

Deciding when to apply for Social Security is a personal decision, depending on a variety of factors, including health, current financial situation and retirement goals.

Ramsey says those who are financially savvy and able to manage their investments can benefit from claiming early. But it’s important to consider compromises, such as lower monthly payments.

Financial experts recommend creating a comprehensive retirement plan that incorporates Social Security as one of many sources of income.

As Social Security faces uncertainty, retirees and other beneficiaries should carefully weigh their options.

If Social Security trends continue as expected, should retirees follow Ramsey’s advice and claim their benefits sooner? Or is it better to wait until full retirement age to benefit from the largest possible share of Social Security?

The answer is yours. When expert opinions vary widely, it is important to consult your financial advisor to determine the best approach for your particular situation.

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This item Social Security Fears Go Viral: Should You Claim Early Like Dave Ramsey Says? originally appeared on Benzinga.com

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