Baby boomers and Social Security..you have heard all the horror stories, it is going broke...but baby boomers should relax. Why?
True...the Social Security sysytem will be paying out more than it takes in by 2017.
Supposedly, there is a surplus that will fund Social Security until 2037...I'll be 91 then if I am so lucky or unlucky depending upon your veiwpoint.
Personally, I think the surplus is funny money. I do not think it really exists...the 2009 deficit was 1.4 trillion...if we had a real surplus why we the US continue to borrow money? Hmmm...
Sooner or later, the fundamental flaw in Social Security is going to have to be addressed... Namely Social Security started in 1936 when the life expectancy was 61 years... Now the life expectancy is between 75 and 80... The retirement age mean the same now, 65, as it was in 1936 doesn't make a lot of sense.
The best reason to relax is that it adds stress...that is unhealthy.
The second reason is that politicians are not going to do anything to antagonize the single most powerful voting bloc...and a group that controls 80% of the assets...read that as cash in the country. How do you say political donations.
I am not saying they should not do something...I am saying they won't do something...sad but true.
We should be grateful to the Gen X folks, those born from 1965 to 1979. There is 51 million of them, 76 million of us baby boomers. They are going to be suporting Social Security while we retire...they also pay upwards of 12 of thier salary for Social Security...boomers paid about 6.5 %. Life is not fair...
No hard and fast rule, I took mine at 62, other friends are waiting until 70 because of generous pensions, book royalties running out, etc.
It is a decision that needs to be thought through. You must take it at age 70 regardless of your financial situation.
Worry about things you can influence...I would not worry about Social Security...it is in the hands of the politicians ...see the above reasons why they will not act to harm the baby boomers.