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Can You Count On Social Security?

By Sally Sima Stahl

If you’re getting closer to retirement, you might be Social Security Trustees report. However, the large cost tax is another possibility for
thinking more about Social Security. Specifically, can of living adjustment (COLA) (8.7 percent) for 2023 could boosting funding to Social
you count on it to contribute part of the income you’ll cause the trust funds to use up their resources sooner. Security.
need as a retiree? But this outlook may represent a worst-case scenario. And here’s a political
There’s been an increase in alarming language For one thing, the cost of the 2023 COLA will be somewhat reality: Social Security
surrounding the solvency of Social Security, but in reality, offset by higher taxes on workers contributing to Social is a popular program
its prospects are not nearly as gloomy as you might have Security. The maximum amount of earnings subject to the and it’s unlikely that any
heard. 6.2 percent Social Security tax jumped from $147,000 future Congress wants to
Here’s the story: Under current law, Social Security is in 2022 to $160,200 in 2023. And in looking down the be blamed for reducing
estimated to exhaust its trust funds by 2035, after which road, further increases in this earnings cap may also help benefits. Of course, there
benefits could be cut by 20 percent, according to the 2022 reduce the gap in the trust funds. Increasing the payroll are no guarantees, but it
seems fair to say that you
can reasonably expect some benefits from Social Security
when you retire.
But perhaps the bigger issue is just how much you
should depend on Social Security for your retirement
income. On average, Social Security benefits will provide
about 30 percent of a beneficiary’s preretirement earnings,
according to the Social Security Administration. But the
higher your earnings before you retire, the lower the
percentage that will be replaced by Social Security.
Still, you’ll want to maximize the benefits that are
available to you — and that means deciding when to start
taking Social Security. You can begin as early as 62, but
your monthly payments could be as much as 30 percent
lower than your normal (or “full”) retirement age, which
will likely be between 66 and 67.
Even if you were to wait until your full retirement
age before collecting Social Security, you’ll also need to
draw on other sources of funding. So, while you are still
working, it’s a good idea to keep contributing to your IRA
and 401(k) or other employer-sponsored retirement plan.
The amount you contribute should depend on your
overall financial strategy and your financial needs, so, for
example, you probably shouldn’t put in so much into your
retirement accounts that you feel significant stress in your
monthly cash flow. But when you do get a chance to invest
more in these accounts, such as when your salary goes
up, you may want to take advantage of the opportunity.
Ultimately, you should be able to count on Social
Security as part of your retirement income. You may want
to consult with a financial professional to determine when
Innovative care for taking Social Security makes the most sense for you and
how you can also get the most from your other retirement
every neurological condition. accounts. You’ll want a retirement income strategy that’s
built for the long run.
This article was written by Edward Jones for use by
your local Edward Jones Financial Advisor, Edward
At Cleveland Clinic Florida, our team of renowned neurologists and Jones, Member SIPC.
neurosurgeons specialize in comprehensive care for every neurological condition. Edward Jones is a licensed insurance producer in
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Jones & Co., L.P., and in California, New Mexico and
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Expert neurological care is in your community. New Mexico, L.L.C.; and Edward Jones Insurance Agency
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Edward Jones, its employees and financial advisors
cannot provide tax advice. You should consult your
qualified tax advisor regarding your situation.
Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.

Call 877.463.2010 to schedule an appointment | ClevelandClinicFlorida.org/Neuro