Social Security is changing next year. People born in 1959 will need to wait until they are 66 years and 10 months old to get their full benefits. You can start collecting Social Security as early as 62, but your monthly payment will be less if you do. You can also get a bonus of up to 8% if you wait until you’re older to claim your benefits. The full retirement age is going up because of changes made to Social Security in 1983.
Social Security benefits will increase by 2.5% next year to keep up with rising prices. This adjustment helps retirees keep up with the cost of living. But, Social Security’s money is running out. The program might not have enough funds to pay everyone in 2033. If that happens, benefits could be cut by 21%. That’s a big difference for retirees who rely on Social Security. It’s important to know how these changes can affect your future finances.
Vocabulary List:
- Benefits /ˈbɛnɪfɪts/ (noun): Payments made to individuals typically after retirement.
- Retirees /rɪˈtaɪriz/ (noun): Individuals who have stopped working usually due to age.
- Adjustment /əˈdʒʌst.mənt/ (noun): A change made to achieve a desired result.
- Reliance /rɪˈlaɪəns/ (noun): Dependence on someone or something for support.
- Program /ˈproʊɡræm/ (noun): A planned series of activities or events.
- Finances /faɪˈnænsɪz/ (noun): Monetary resources or economic status.
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