Without Social Security benefits, millions of Americans—from retirees and disabled adults to the families of retired, disabled or deceased workers—would lack economic security. The program paid monthly benefits to 57 million people in 2013, funded by the Social Security taxes paid by 158 million. Social Security benefits account for 38 percent of the annual income of U.S. elderly according to the Social Security Administration.

With so many retirees collecting Social Security benefits, and so many pre-retirees factoring those benefits into their future retirement plans, it’s no wonder questions about the program abound. Fortunately, it’s possible to find the answers you need. Consider these responses to your three biggest Social Security questions.

1. Will Social Security still be there when it’s time for me to retiree?
   According to the latest Board of Trustees annual report from the Social Security Administration, they project the combined assets of the fund will be depleted by 2033. Now, while alarming, that doesn’t mean Social Security payments will stop. Because the government will still be collecting payroll taxes from workers and employers, they should be able to fund 77 percent of the scheduled benefits. Your financial planner should help you factor this potential reduction into your retirement plan.
   
   If you’re more than a decade away from retirement, downsizing of the program becomes increasingly likely. It’s quite possible the government will elect to raise the full retirement age, change the annual cost-of-living adjustment or take other steps to make Social Security funds last longer. It’s important to take all of these possibilities into account when saving for the future.
2. When should I start claiming Social Security benefits?
   While 62 remains the most popular age for beginning to claim Social Security benefits, you’ll get a larger payment if you delay. In fact, for every year you postpone collecting Social Security between the ages of 62 and 70, you payment will rise around 7 percent to 8 percent. This can significantly increase the amount you collect in your lifetime. If you’re married, there are additional claiming strategies you can utilize to increase your lifetime benefit. Your financial advisor will be your best source of guidance.
3. Will I lose Social Security benefits if I want to continue working after I retire?
   Endless rounds of golf or days on the beach aren’t right for everyone. Some seniors prefer to work after they’ve retired from their previous career, whether for personal or financial reasons. Provided you’ve already reached full retirement age, the money you earn won’t reduce your Social Security benefits. However, if you’re under full retirement age, you may be subject to a reduction of as much as $1 in benefits for every $2 you earn over a certain income threshold. Once you reach full retirement age, Social Security will increase your benefit to restore those withheld payments. Again, you should consult your financial advisor for more insight.

Whether you’re already collecting Social Security benefits, are just starting to think about retirement or fall somewhere in between, we can help. Contact us today for the answers to all your Social Security and retirement planning questions.