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.
The story you’re reading is premium content from the Austin American-Statesman. Subscribers get total access to all our in-depth news, digital editions and exclusive premium content. You can also buy a 24-hour digital pass or 7-day digital pass.
Read MyStatesman.com now — 24-hour digital pass99¢ for 24-hours
Read MyStatesman.com all week — 7-day digital pass$3.99 for 7-days
Subscribe to the Statesman for as little as 33¢ per dayView Offers
For Subscribers: Register your account for digital access.Access Digital
For Subscribers: Sign in here if you have already registered your account.Sign In