In an insightful webinar titled “Social Security Insecurity: A New Consideration in Retirement Planning,” hosted by the American College of Financial Services, Heather Schreiber, President and Founder of HLS Retirement Consulting, together with other retirement experts discussed the potential impact of COVID-19 on Social Security.
The experts highlighted the potential 21% cut in benefits in the next dozen years if no action is taken to strengthen the Social Security Trust Fund. Notably, pre-retirees born in 1960 may face additional cuts due to the SSA’s complex benefit calculation formula. Furthermore, the pandemic-induced job losses and wage declines in 2020 are expected to affect the Average Wage Index, further impacting the benefits of those born in 1960.
Schreiber also pointed out the probability of a near-zero cost-of-living adjustment for 2021, impacting all Social Security beneficiaries. With the ongoing pandemic and economic recession, finding a fix for Social Security is becoming more challenging. You can read the full details here.
You can read the original full article here from ALM | Think Advisor.
