Life is all about decisions. For future Social Security recipients, you must make the decision on when you’ll retire.
This isn’t just about choosing when you’d like to walk away from the workforce. It’s also about considering how big you’d like your benefit checks to be.
As most people know, delaying your Social Security will result in higher payments up to the full retirement age. But many seniors find they’re pressured to make decisions they otherwise wouldn’t, all because the program is being poorly managed at the moment.
How Low COLAs Put Social Security Recipients in a Tough Position
With low Cost-of-Living Adjustments (COLAs) being a persistent problem, seniors have a tough decision.
Some Social Security recipients claim benefits as soon as they’re available. This is fine for those who want to retire quicker and spend more time on their own terms. But many are pushed into this decision, because they fear benefits will run out if they don’t act fast.
It’s common for seniors to delay their benefits. Some do this because it’s a way to maximize payments. But not every senior makes this decision freely. Some need to wait, because their living costs exceed what their benefit amount would be if they claim early.
These issues highlight a critical problem: the need for fair yearly COLAs and reimbursement for years when these adjustments were skipped. Fair COLAs ensure that benefits keep pace with inflation, helping seniors maintain their purchasing power. Reimbursing for years when COLAs were inadequate or skipped would correct the financial shortfall many retirees experience.
By addressing these issues, we can help seniors make decisions about their benefits without the added pressure of financial insecurity. Ensuring fair yearly COLAs and compensating for skipped adjustments will provide stability, allowing retirees to enjoy their retirement on their terms.
