Advisors weigh in on concerns about Social Security’s ability to pay retirement benefits for workers

A recent Bankrate survey found that a majority of Americans are concerned about the future of Social Security, especially as the retirement trust fund is projected to run out by 2033. Nearly three-quarters of non-retired adults and retired adults worry that they may not receive their benefits if the trust fund is depleted. Older Americans, including baby boomers and Gen Xers, are particularly concerned about this issue. Financial advisors suggest that clients delay claiming Social Security benefits until age 70, if possible, to maximize their payments. Social Security acts as “inflation indexed longevity insurance” and provides a steady stream of income for retirees. However, a significant portion of Americans expect to rely heavily on Social Security in retirement, highlighting the importance of saving early and for longer to avoid financial dependence on the program. While concerns about Social Security’s future loom large for many, other pressing economic concerns such as inflation, health care costs, and housing affordability are also at the forefront for Americans. Ultimately, experts emphasize the importance of saving for retirement early on, in order to build a secure financial future independent of Social Security benefits.

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