It feels like every time you turn around, someone’s trying to chip away at your Social Security benefits, doesn’t it?
So, it probably won’t come as a shock that there’s yet another attempt to reduce Social Security benefits for those who play by the rules!
Take a moment to see if this latest threat to Social Security might end up impacting the payments YOU’ve worked for…
As part of my commitment to you as a member of The Midas Legacy, I make sure to stay informed on anything that could impact your retirement.
And when thinking along those lines, I’m reminded of an article in the Wall Street Journal I once came across proposing to SLASH your Social Security benefits.
Yes, you read that right.
But what bothers me most about this opinion is that it penalizes those who do things the right way—the people who wait to claim their benefits.
Here’s the argument from that WSJ article:
The focus is on the 8% increase your retirement benefits receive when you delay claiming for a year. The writer, Mark Hendrickson, argues that 8% is too high. He even titles the piece, “Please stop my 8% Social Security raise.” He points out that the economy is growing at a rate of only 1% or 2% per year.
While the article almost seems to make a bit of sense, it misses a crucial point: a big reason for the 8% increase when delaying your benefits is that you’re sacrificing an entire year of payments!
The current rule works like this: you forgo a year’s worth of payments in exchange for receiving higher payments later.
Over time, those increased payments compensate for the ones you missed.
It’s simple, right? Just common sense.
But if this new idea from the WSJ piece gains traction, your benefits could be reduced to the point where delaying Social Security would no longer make sense.
Instead of being rewarded for your careful planning and smart saving strategies, you could end up getting next to nothing in return for your patience.
If this idea takes hold, it may be time to reconsider your Social Security strategy and take matters into your own hands with stocks, real estate, or business. But time is running thin if you want to get some real wealth set up from those…
