The insecurity of Social Security is a significant issue in financial planning, particularly because of the economic effects of the COVID-19 pandemic. Two opposing myths related to Social Security are (1) because Social Security is underfunded, it is best to elect Social Security as early as possible, and (2) Congress will fix the problem before anything happens to the system, assuring that benefits will be untouched going forward. This column addresses these myths first by sizing the underfunding problem, then identifying the possible fixes to the system, and finally suggesting ways that advisors can help their clients deal with the issue.
Author: Steve Parrish, JD, RICP, ChFC, CLU, RHU, AEP, is the co-director for the New York Life Center for Retirement Income Planning at The American College of Financial Services. He is also adjunct professor of advanced planning at The American College and an adjunct professor of estate planning at Drake University Law School.
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