Some social security beneficiaries fear losing their benefits
It has been a pretty hectic fall season for Social Security.
The Social Security Administration announced in October that there would be a cost of living adjustment (COLA) of 5.9% in 2022, the highest number since the early 1980s.
The previous month, the Social Security Administration released a report indicating that the expected date on which the main fund that supports social security will run out in 2034, is a year earlier than expected.
Also, Social Security has announced that a new type of statement will debut soon.
Recipients are starting to wonder if Social Security will be available to them when they need it, according to CNBC. The press agency. cited a report from the Center for Retirement Research at Boston College, which examined how the media affects perceptions of Social Security.
“These findings suggest that media coverage of the trust fund has made many workers fear an unrealistic cut in their future social security benefits,” Laura Quinby and Gal Wettstein, researchers at the Center for Retirement Research, said in the report.
“This study explores how media headlines on the Social Security trust fund affect workers’ expected claim ages, benefit expectations and savings rates,” according to the report. “The results show that the headlines on the trust fund changed the age of claims and benefit expectations, but not expected savings rates.”
“Respondents who read one of the three treatment headlines reduced their expected age to claim reimbursement by about a year on average,” the report continues. “In addition, they were more likely to express realistic expectations about the level of future benefits and less likely to be in extreme positions (expecting very low or very high benefits). In particular, reading current income led respondents to the most realistic assessment of future benefits (around three-quarters of current levels in the law).
CNBC also cited experts telling Social Security recipients that reports of fund depletion were no reason to start collecting Social Security sooner.
“Don’t file early just because you have concerns about the program 12 years from now,” Scott Thoma, investment strategist at Edward Jones, told CNBC. “You should always make a deposit decision based on your personal financial situation and your own needs.
Additionally, Larry Kotlikoff, professor of economics at Boston University and president of Economic Security Planning, told CNBC recipients should wait to start collecting.
“Do people have to rush to withdraw their Social Security benefits right away? No, ”he said.
Congress will have a few options to maintain Social Security solvency. Its members could change the funding formula, delay the retirement age, or somehow adjust the way benefits are distributed.
Stephen Silver, technology writer for the National interest, is a journalist, essayist and film critic, who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraph Agency, Live the Fearless Life, Backstage magazine, Broad Street Revue and Splice today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in the suburbs of Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.