OMAHA, Neb. –Social Security is a significant source of income for many retired Americans, but the solvency of the system is currently in question. Many experts suggest that high unemployment combined with an influx of new claimants will cause the Social Security system to run out of funds even faster than initially projected.
"It's no secret that the Social Security system is facing challenges and people are nervous, but claiming Social Security early could significantly impact their ability to meet retirement goals. Don't make decisions based on fear alone," said Joe Elsasser, CFP®, Founder and President of Covisum, the financial tech company that created Social Security Timing®, Tax Clarity®, SmartRisk™, and Income InSight®.
In a new Covisum white paper, "Is Time Running Out on Social Security," Elsasser explains how Social Security will continue to be an essential retirement income stream. The white paper outlines why claiming early in response to potential cuts to Social Security benefits is not advantageous for most people.
"There seems to be some confusion among consumers surrounding the solvency of Social Security," said Elsasser. "Even if there is no reform and the Social Security trust fund is depleted, which is unlikely, benefits won't just disappear altogether."
In addition to potential benefit cuts, several other factors can complicate the claiming process. Multiple income streams, a spousal or widow(er) benefit, age, and longevity can all impact the optimal time to claim Social Security benefits.
"It's important to look at the full picture before claiming Social Security benefits," Elsasser said. "Evaluating the impact of different factors, including potential cuts to benefits, can help you access the full amount you're entitled to."
Retirees can often access thousands of dollars of additional lifetime value by working with a financial advisor who can help them navigate the complexities of the Social Security system, including potential benefit cuts.
Covisum creates software solutions, practice management, and marketing resources to help advisors and financial institutions grow and improve lives through better retirement decisions. Covisum powers some of the nation's largest financial planning institutions and serves more than 20,000 financial advisors. For more information, visit www.covisum.com.