Another ploy to cut your Social Security

Jim_SamsonIt seems like someone is trying to slice down your Social Security benefits every time you turn around, doesn’t it?

Then I guess this message shouldn’t surprise you: there’s yet another ploy to cut the Social Security benefit for those who do the right thing!

Take a look and see if this new attack on Social Security could end up affecting the payments YOU should be receiving…

It’s part of my obligation to you, a member of The Midas Legacy, to stay up to date on anything and everything that could affect your retirement. That’s how I recently came across a piece in the Wall Street Journal suggesting to cut your SS benefits.

Yup, you read that correctly.

But my biggest issue with this opinion that I’m about to show you is that it takes away the benefits earned by those who play the game correctly – the people who wait to collect their benefit…

Here’s the argument from that WSJ opinion piece:

  • The subject of the argument is the 8% jump your retirement benefit amount gets when you delay claiming it for a year.
  • The writer, Mark Hendrickson, says that 8% is too high. Within the piece, Hendrickson says, “Please stop my 8% Social Security raise.”
  • He cites the fact that the economy is only growing at a rate of 1% or 2% per year.

And while the piece almost begins to sort of make some semblance of sense, the writer is missing one very important part of the puzzle: a big part of the reason for the 8% increase on delaying benefits for a year is the fact that you will be missing out on an entire year of payments!

As the rule stands right now, you give up a year of payments in return for a higher payment down the road. Eventually, those higher payments will make up for the payments you missed out on.

Makes sense, right? Common sense…

But if this new idea raised in the WSJ piece comes to fruition, your benefit could be cut so much that delaying your Social Security payments could make no sense at all.

So instead of doing the right thing and being rewarded for your smart saving/investing strategy, you’d get next to nothing in return for your efforts…

If this catches on, it will be time to rethink your Social Security strategy.

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