Estimated read time: 5-6 minutes
Are you counting on Social Security as an important source of income in retirement?
You're not alone.
Nine out of 10 Americans age 65 and older are currently receiving some form of Social Security. And Gallup polling finds 58% of retired Americans consider Social Security to be a "major source" of their retirement income.
But if you were born before 1970 and haven't filed for Social Security benefits yet, you're in a tough spot. Social Security is in trouble and your benefits could be at risk.
Once you understand the whole picture, it may change your plans for how and when you file for your benefits.
Good news – a new report titled "Your Guide to Filing for Social Security in 2025 and Beyond" could help. It's available at no cost from Utah's B.O.S.S. Retirement Solutions at the link below.
Ryan Thacker and Tyson Thacker from B.O.S.S. Retirement Solutions want everyone to understand why this is such an important read.
Social Security is running out of money – and it could cost you $16,500 in benefits, every year.
–Tyson Thacker, B.O.S.S. Retirement Solutions
Here's the big picture. The Social Security Board of Trustees has confirmed the Social Security Trust Fund is running out of money.
Social Security is spending more than they're bringing in. The trust fund was designed to make up that difference, during temporary shortfalls. But based on current trends, the trust fund will run out of money in less than 10 years.
At that point, your benefits would be cut automatically – based on current law.
Barron's did an analysis of what that could mean for you. The average couple would automatically lose $16,500 in benefits every year. And if you add that up over 10, 20 or 30 years, you could lose hundreds of thousands of dollars in retirement income that's rightfully yours.
The typical worker already misses out on an average of $182,000 in lifetime benefits.
–Ryan Thacker, B.O.S.S. Retirement Solutions
Even today, retirees are collecting far less in Social Security benefits than they could be.
According to economist Laurence Kotlikoff, 94% of Americans file for Social Security benefits at the wrong time. At what cost?
This mistake is costing the average American $182,000 in lifetime income.
You've spent your entire working life contributing to Social Security. These are benefits you deserve – and at this point, it's basically throwing away "free money" to not make the most out of your benefits.
Social Security was already complicated enough – there are 2,728 rules in the handbook!"
–Tyson Thacker, B.O.S.S. Retirement Solutions
Unfortunately, knowing how and when to file for Social Security is not as simple as it sounds at first.
On the surface, if you file earlier (starting at age 62), you get your benefits earlier, but a smaller monthly check. If you delay filing for your benefits (up to age 70), you receive a bigger check.
It's not so simple though. There are 2,728 rules in the Social Security handbook, according to Forbes. And there are hundreds of rules about those rules.
And many of those rules are written by lawyers and lawmakers, and may not be so easy to interpret.
If you want to wring every nickel you deserve out of your Social Security benefits, you need to take into account the complexity of today's Social Security system.
The traditional claiming strategies for Social Security are no longer viable today.
–Ryan Thacker, B.O.S.S. Retirement Solutions
Still today, if you read most financial media, you'll get the impression that filing for Social Security is a simple decision.
In most cases, they'll recommend you wait as long as possible to receive the biggest benefits check.
Unfortunately, this strategy could end up costing you a small fortune in benefits.
Did you know up to 85% of your Social Security benefits can be taxed? A bigger Social Security payment could put you in a higher marginal tax bracket. And higher taxes could mean you actually keep less net income from your benefits.
Traditional thinking about delaying your benefits to get a blogger check doesn't necessarily take this into account.
It also doesn't account for the Social Security trust fund running out of money within 10 years, and what that could do to your income for the rest of your life.
To help you make the best decision based on today's Social Security system, B.O.S.S. Retirement Solutions is now offering "Your Guide to Filing for Social Security in 2025 and Beyond" at no cost to Utah residents.
This free report explains what every retiree should know about the state of Social Security today, and how it could impact your benefits.
Download "Your Guide to Filing for Social Security in 2025 and Beyond" here.
B.O.S.S. Retirement Solutions has helped more than 33,000 families make informed decisions on Social Security. They are a five-time winner of Utah's Best of State award, and are frequently featured on NBC, CBS, and ABC TV and on local radio stations.
About the authors: Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the book, The B.O.S.S. Retirement Blueprint, and they've helped thousands of area families plan for a better, more secure retirement. They are a five-time winner of Utah's Best of State Award and have seven offices located throughout the Wasatch Front.
This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization's criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, and 2023. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.
