#benefit-reductions

#benefit-reductions

The Old-Age and Survivors Insurance Trust Fund faces a critical milestone in 2033 when its reserves are projected to run dry. This doesn't mean Social Security disappears-payroll taxes from current workers will continue flowing in, but those taxes alone won't cover full benefits. The gap between incoming revenue and promised payments creates the funding crisis. Without congressional action, the program could only pay about 77% of scheduled benefits.

Filing for Social Security at full retirement age (FRA) means you'll avoid any sort of reduction to your monthly benefits. FRA is 67 for people born in 1960 or later, but it varies slightly for earlier birth years-check SSA.gov for your exact age. However, you're allowed to claim Social Security once you turn 62. And the further away from FRA you are, the more of a hit to your benefits an early filing will cause.