Responding to an inquiry on whether deferring Social Security was wise or not, you wrote that given the current life expectancy, deferral is a good idea. Does your answer take into consideration that by 2033, the payroll taxes collected may be enough to pay only about 77 cents for each dollar of scheduled benefits? If not, does this fact change your view? — K.A., Dallas
Every one of the calculations I’ve used is based on receiving Social Security according to the current formula, with no provision for a future reduction in benefits. If benefits were reduced sometime in the future to reflect actual employment tax revenues, the value of deferral would go down. But it could decline quite a bit before it would be a bad deal compared to alternatives.
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