While the solvency of the Social Security system has been an issue for awhile, the COVID-19 pandemic has caused even more difficulty for the program. When reviewing the efficiency of current benefit processing and how to finance Social Security in the future, the effects of the pandemic are evident. While the Social Security Trustees report for 2021 has yet to be released, last year's report indicated that reserves would be depleted by 2035. Given the high unemployment and market volatility throughout the past year, that estimate is likely to change. This recent InvestmentNews article takes a closer look at how the pandemic has impacted the Social Security program, and how Covisum's new calculator can help consumers determine the impact of potential cuts to Social Security benefits. Covisum Founder and President Joe Elsasser, CFP® was quoted in the article.
“The tool demonstrates that even with a dramatic benefit cut, there is still value for most people in delaying benefits, though not as much as before any cuts. It is an attempt to debunk knee-jerk reactions to claim early.”