Ask Larry

What About Future Social Security Benefit Cuts?

I'm curious if your software, in an effort to maximize life time benefits, has considered the possibility of a 21% cut in benefits in 2034? Is there an option to run that scenario? I'm 64 and waiting till 66 to begin my spousal (she began at age 62 3 yrs ago) and letting mine grow till age 70. However, if I am going to see a big cut 12 years after starting, it could make sense to begin mine now and draw a benefit for 6 extra years before any cut. Thoughts?

Hi, Our software does permit you to specify a SS benefit cut of a given percentage starting at a given future date. Social Security is 31 percent underfinanced and $26 trillion in the red. This said, I don't see Congress cutting retirement benefits of anyone directly -- certainly not those who are now above age 62. But your guess may be better than mine. Anyway, you can look at this issue in our software.

best, Larry

Jun 24 2016 - 10:45am
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