Social Security Fear Goes Viral: Should You Claim Early Like Dave Ramsey Says?

Social Security Fear Goes Viral: Should You Claim Early Like Dave Ramsey Says?

Social Security Fear Goes Viral: Should You Claim Early Like Dave Ramsey Says?

Americans increasingly fear that they will not receive the Social Security benefits they have contributed to throughout their careers.

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

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The Social Security Administration (SSA) explains that Social Security taxes go to people who are already retired, people with qualified disabilities, survivors of deceased workers, and dependents of beneficiaries. They do not go into a personal account for contributors to retire.

Amid fears that contributors will not receive adequate Social Security funds, financial guru Dave Ramsey recommends that Americans claim Social Security benefits early. In contrast, other financial experts urge them to wait as long as possible to receive a larger 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 have faster access to their money, enabling them to invest it in mutual funds to earn potentially higher returns.

Ramsey claims Americans can overcome lower monthly payments by investing early and building up their investments.

He points out that the Social Security system is fundamentally flawed and unreliable, describing it as a “broken system” and a “disaster.” Ramsey urges people not to rely on it as 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 get the money as soon as possible and make it work for you through smart investing.

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

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

Financial planners argue that for those in good health with longer life expectancies, waiting can ensure a more financially stable future. Larger monthly paychecks from hosting can help cover rising health care costs and other expenses during retirement.

Many people worry about whether Social Security will be available when they retire. As the system faces challenges, SSA Chief Actuary Steve Goss reassures Americans that despite the risk of reduced benefits, the Social Security Trust Funds will not run out of money.

According to Ramsey’s guidelines, the fear of the disappearance of this program is reason enough to claim as soon as possible to mitigate the risk of possible future reductions in Social Security payments.

So should you claim early?

Deciding when to claim Social Security is a personal decision, depending on a variety of factors, including your health, current financial status, and retirement goals.

Ramsey says those who are financially sound and able to manage investments can benefit from claiming early. But it’s important to consider the trade-offs, such as lower monthly payments.

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

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

If Social Security trends continue as predicted, should retirees follow Ramsey’s advice and claim benefits early? Or are they better off waiting until full retirement age to claim as much Social Security as possible?

The answer lies with you. When expert opinions vary drastically, it’s important to consult with your financial advisor to determine the best approach for your unique circumstances.

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This article Social Security Fear Goes Viral: Should You Claim Early Like Dave Ramsey Says? originally appeared on Benzinga.com

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