Should I Collect Social Security Now or Wait Two Years Until Age 70?

Dear Nervous: Please do not be nervous that recent “turbulent events” pose a threat to your future Social Security benefits. Those events do not, in any way, jeopardize your future Social Security benefits, because Social Security is completely separate from all other federal political issues and finances. The primary problem with Social Security became an issue long before the current administration took office.

The Trustees of Social Security have been warning Congress for decades that Social Security’s finances require Congressional attention. The fact is that Social Security revenue (as predicted decades ago) became insufficient to pay all benefit obligations in about 2021. Since that time, money from Social Security’s reserved funds (Trust Funds)has been used to pay full benefits to all. In 2020, there was nearly $3 trillion in SS reserved funds, but that has now dwindled to about $2.5 trillion as reserves are used to supplement SS payments. And that problem continues. The Trustees of SS now predict that the reserves will be fully depleted in about 2032, at which time – lacking program reform by Congress – Social Security will be forced to pay out only what it receives in revenue. And that would mean an estimated cut of about 23% to everyone’s monthly SS benefit. In the unlikely event that happens, wouldn’t a 23% reduction to your larger age 70 benefit be better than a 23% cut to your lower age 68 benefit? 
 
No one wants those cuts to happen – least of all politicians – because it would amount to political suicide (seniors are, after all, a very large voting bloc). Thus, we believe that Congress will act to reform Social Security to prevent any general benefit cuts from happening. It will, however, require Congressional bipartisanship because the reforms needed for Social Security are likely unsavory to some. Those reforms may include SS tax increases and changes to the basic structure of the SS program to align it with today’s demographic reality. The program needs reform, which Congress has, unfortunately, neglected to provide for many years. And this neglect will likely also continue, at least through the forthcoming mid-term elections. It seems the nature of Congress is to wait until the last possible moment to offer corrective legislation.  
 
Here’s what to keep in mind: Congress already knows how to reform Social Security to avoid any future benefit cuts – they just lack the bipartisanship to accomplish that reform. For our part, the Association of Mature American Citizens (AMAC) has offered to Congress a commonsense reform plan via its “Social Security Guarantee (SSG).” AMAC’s proposal has received a positive reception in Congressional circles, and we are optimistic that the proposal will provide financial stability to the program for generations. AMAC continues to advocate for SS reform in Washington, D.C. on a regular basis, even more intensely as the depletion of the SS Trust Funds grows closer. 
 
We do not suggest changing your strategy for claiming Social Security benefits based upon fear the program will cut benefits. That’s because it’s unlikely that all benefits will be cut because we believe Congress will eventually enact reform. And even in the unlikely event that Congress neglects to reform the program by 2032, the percentage of reduction to a higher monthly SS benefit amount would be better than a similar reduction to a lower benefit amount. In other words, your original plan is still a prudent one.

Regarding your question about your estimated benefits, I expect your most recent SS statement didn’t include future benefits because you are already collecting SS survivor benefits. You can contact SSA at 1-800-772-1213 to obtain the future SS retirement estimates you seek.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.