1. When I retire, can the Social Security be relied upon?
The latest report of the Social Security Trustees forecasts that by 2033, the Social Security trust fund would have been depleted. But there is no cause for worry since the ongoing Social Security collections through payroll taxes can fund up to 77% of any scheduled benefits by that time. Younger people should consider that by the time of their retirement, benefits would be squeezed a little bit and should include this in their retirement plans.
2. When is the appropriate time to claim my Social Security benefits?
By popularity, most people claim the benefits at the age of 62. Taking our benefits too soon may be risky. Delaying our retirement between the age of 62 and 70 would boost you benefits by as much as 7% to 8%. Spouses may boost their claims through diverse claiming strategies.
3. Can my Social Security benefits be affected when I claim them and then work?
Benefits are not reduced as long as you reach the full age of retirement although you may be assessed with extra tax for your extra income. However, if you do claim and work simultaneously while in full retirement age, your Social Security benefits will reduce by $1 for every $2 that you earn within a particular threshold. For 2015, the threshold falls at $15,720.