Social Security

With all that has been said, written, and discussed about preparing for retirement, it might seem that there is very little remaining that still needs to be talked about.

It may seem strange to some that this question should even be posed. After all, the conventional wisdom, which most of us have heard over and over, is “The later the better; wait until you’re 70 if you can, to get the maximum monthly benefit.”

Do you know your full retirement age for purposes of determining your Social Security retirement benefits? Full retirement age is the age at which a person first becomes entitled to full (unreduced) retirement benefits. For years, that age was 65. However, that age has been gradually increasing until it reaches 67 for people born in 1960 and later.

It’s not that often that you get good news about insurance premiums. However, millions of Medicare B recipients who had been worrying about a potential 52% premium increase were likely heartened to hear about a bipartisan bill just approved by Congress.

When it comes to the decision of when to file for Social Security benefits, many people make the same mistake. They file for partial benefits at age 62, as soon as they qualify to begin collecting. In fact, people of average or above average health would benefit by delaying Social Security benefits until age 66 or even waiting until they reach age 70.

Governor Perry generated quite a stir during a recent Republican debate when he referred to Social Security as a Ponzi scheme. According to Governor Perry Social Security is a “monstrous lie…a Ponzi scheme to tell our kids that are 25 or 30 years old today you’re paying into a program that’s going to be there.”

Do American workers have confidence that they will receive future benefits from Social Security? Results from the Employee Benefit Research Institute’s 2011 Retirement Confidence Survey (RCS) show most American workers are skeptical about the program. Here are some statistics from the report: