Despite positive economic indicators that have extended the estimated depletion date for Social Security's trust fund to 2035, experts warn that the looming shortfall has not been addressed by Congress. The projected depletion of Medicare's Hospital Insurance trust fund has been pushed to 2036, but both programs face challenges that require prompt action. Possible solutions include tax increases, benefit adjustments, or a combination of both.
Many new retirees claim Social Security benefits before age 65, even though waiting until their full retirement age or later would significantly increase their lifetime benefits. Waiting even a few months can make a difference. Factors to consider include monthly benefit size, lifetime benefits, longevity protection, and immediate financial needs. While claiming early reduces monthly benefits, it's important to avoid thinking of age 62 as "early" and instead understand the penalties associated with that timing.
