Financial expert says Social Security is a tax question, explains what we should know
Financial expert talks about what we need to know on Social Security
Many are left wondering what age you should take the money if you are close to retirement. Michael Masserant says it depends.
FOX 2 - Social security is a huge topic. Will it run out of money? I think that's a concern for a lot of people that are about to collect currently.
Michael Masserant is a financial instructor from the Retirement Education Foundation.
FOX 2: "What to make about social security?"
"It's especially in the news when there are elections that we just had. People talk about it all the time, (like) 'Oh my gosh, I've heard that it's going to run out. I'm going to turn on my benefits right now,'" he said. "So to set the record straight here, if they change nothing, if they don't change taxes, if they don't change the claiming ages, then by 2035 - ten years from now, they'll still be able to satisfy 83% of the obligations."
Masserant says like most experts, he believes something will be changed.
"They're going to change how we tax it, which I'm not saying (is) good, bad, right, wrong," he said. "They may increase taxes. They may change the claiming age window. They're going to change something to help support this program, because it's really important for most of our retirees in the country."
The backstory:
Social Security has been around for 90-plus years and many believe something does need to change. What that is, is still yet to be determined.
"Back in 1935, when it was funded and first started, the average life expectancy was the mid-60s. Now it's the mid-80s," said Masserant. "People are living longer and the Baby Boomer generation is our largest generation yet. And so we have the largest generation yet living longer, claiming more benefits.
"And the younger generations can't keep funding that Social Security trust fund. So they've got to change something and we think they will."
Many are left wondering what age you should take the money if you are close to retirement.
Masserant says it depends.
"It is different for everyone. Everyone's got a different situation, and people really, you know, they always jump to that online break-even calculator based on a projected date of death. That calculator is nonsense," he said. "Social Security is a tax question. What's most important is how many dollars do you keep in your own pockets.
"And trying to max that out, it's not just a date of death break-even calculation. There are so many other factors that go into it, and you've got to coach yourself on what are those factors to make the choice for yourself."
For more information, go to The Retirement Education Foundation HERE.
The Source: Information for this report came from an interview with Michael Masserant from the Retirement Education Foundation.
Michael Masserant is a financial instructor from the Retirement Education Foundation.