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Created: August 11, 2020
Modified: October 11, 2023

Will the Recession Affect Social Security?

Will the Recession Affect Social Security?

Social Security is something that people commonly make the biggest mistakes with. The recession may make claiming Social Security benefits even more complicated. Most people don’t know how to claim Social Security. They make decisions based on what they’ve heard or what they’ve read in a magazine. As a result, hundreds of thousands of dollars can be left on the table.

There are many ways to take Social Security. You can take it early, or you can take it later. The mistake a lot of people make is, they’ve done a great job saving for retirement, they don’t look at Social Security as an asset. They look at it like it’s a separate decision.

Three things to consider:

  • The Recession’s Impact on Social Security

Will this recession we’re in right now, affect your Social Security? It could affect when you claim your benefits. I believe if you’re within five years of retirement (or if you’re already retired) those Social Security promises will be kept.

However, you might want to claim Social Security earlier. That way, you can leave your investments alone to recover again. This is a unique decision. A professional should do an analysis for you so you can make the right decision for your situation.

  • Unemployment’s Impact on Social Security

Whether you’re already retired or getting close to retirement, the high unemployment that we’re experiencing right now can affect the amount of money being paid into the Social Security system.

The Social Security system is pay as you go. The people that are getting benefits today are being financed by existing workers. As a result, you’ve got to watch out. Make sure Social Security is safe.

  • The Impact of Timing on Claiming Social Security Benefits

If you claim Social Security wrong as I mentioned earlier, it can have a lasting impact for the rest of your retirement. I’ve seen it happen here at Johnson Brunetti. We’ll meet somebody who is retired. They come in for a consultation and we realize they took Social Security in the wrong way. Don’t leave a bunch of money on the table.

Joel Johnson, CFP®
Managing Partner at Johnson Brunetti
Joel Johnson, CFP®
Joel Johnson, the Managing Partner of Johnson Brunetti, has been in the financial services industry since 1989. As a CERTIFIED FINANCIAL PLANNER™ professional, Joel and his team have helped thousands of families develop their own individualized retirement plans based on the unique needs of those approaching the second phase of their lives. Starting from humble beginnings but developing a strong work ethic early on, Joel’s grandfather taught him by serving others first and creating value for someone else, you will never have to worry about money. These important life lessons were the driving…
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