weekly blog--one for the ages
Things were so bad during the Great Recession, according to Boston College’s Center for Retirement Research, that it induced more than 5 percent of the eligible population to claim their benefits at age 62. This meant that these early claimers wound up with lower checks each month than if they waited until full retirement age.
Fast forward to today…the Social Security Trust Fund was projected to run out by the year 2035. It could be two years earlier now, and since Social Security is financed by payroll taxes, the Social Security Trustees estimated last year that benefits would have to be cut about 25%. And that was before the current crisis.
The Social Security trustees (Labor Secretary Alexander Acosta, Health and Human Services Secretary Alex Azar and the head trustee, Treasury Secretary Steven Mnuchin) have yet to release their own updated estimate on just how faster the trust fund will run out of cash.