Unlock the Secrets of Your Social Security Statement NOW!

Today I want to talk about something that many people overlook, but it is critical to your financial future: your Social Security statement. Now, whether you're years away from retirement or maybe it's just around the corner, you need to keep an eye on this document because it can make a big difference in your planning.

Hey everyone, I'm Phil Clark, your trusted wealth advisor here at OmniStar Financial Group. Most Americans under retirement age, they have their doubts, and I understand why, that Social Security may not be available when it's their turn to receive it. In a worst case scenario, reserves for the Old Age and Survivors Insurance program, or OASI, they're projected to run out in 2033. That's not good. We're talking about n years. Frankly, I believe those reserves ran out a long time ago.

Regardless of where we are in terms of reserves, if taxpayers continue paying into the program, it may be sufficient to sustain something like 79%, 80% of the benefits after 2033. That tells you right away there's potentially a big cut coming. This could change if our lawmakers decide to get serious about saving the program. The good news is there is time for our legislators to shore up the financing shortfall. Regardless of what our legislators do, the system's in place today, it's still paying, and probably will for the next, say, 10 to 15, maybe even 20 years. But lots of work needs to be done.

Rather than focus on that, let's dive into three crucial reasons why you should be checking your Social Security statement every year. It gives you an estimate of how much you could receive each month based on the age you decide to start taking benefits. It's really a key to your retirement plan, and it's precise. You can get the statements in just a few clicks, and it looks like this. So you can see from this sample there's lots of information that helps you make better decisions.

Social Security, it allows you to start taking benefits as early as age 62, but did you know that your monthly payout increases the longer you wait? For example, if you wait until age 70, you could receive up to about 25% more than if you claimed at full retirement age. That's a pretty big increase. So whether you plan to retire early or wait until age 70, this is a great conversation to have with your financial advisor or wealth planning team. They can help you decide which is better based on your situation.

Next up, it's your earnings history. You'll find this on the statement, but your Social Security benefits, they're based on your highest 35 years of earnings, so it crucial that the Social Security Administration has an accurate record. And we all know they're dealing with millions of people. It's just possible that your information isn't always accurate. So a mistake here could significantly change or even reduce your future benefits. If you notice any discrepancies, you're going to want to get those corrected right away, and that's a phone call to get the process started. It's going to make a difference. Keeps them honest, and it helps you plan better.

If you haven't yet worked 35 years, you might be asking, what will I do? Will I ever get Social Security? Well, don't worry. You can still increase your benefits by continuing to work and paying into Social Security. The more you make, the more you pay in, the better the potential benefit. You need to work and pay Social Security taxes for a minimum of 10 years to earn the minimum required 40 credits. This applies to anyone that was born after 19 19 29. Just because you haven't worked 35 years doesn't mean you won't get it. It's really just 10. 35 does give you an advantage because there's more years with higher income, and that will wait to a much higher benefit. And just remember, zeros are counted for years when you don't work, and that can pull your benefit down.

Finally, your Social Security statement isn't just about retiring. It also covers things like disability and survivor benefits. So in the unfortunate event that you become disabled, you or your family may qualify for disability benefits. Likewise, if something happens to you, your spouse, children, and even dependent parents could be eligible for survivor benefits.

Social Security isn't designed, by the way, to be your only source of income in retirement. It was only supposed to be a supplement, nothing less, nothing more. It's just one piece of a complicated puzzle, one that requires planning. Don't fail to plan for other income streams like pensions or your IRAs or 401ks, company provided benefits, even annuities. At the end of the day, what you're trying to do is build a comfortable retirement based on goals and objectives. That requires planning.

Keep in mind there are a lot of great tools online that you can use to help you decide when the best time to claim Social Security is based on your goals. But a good financial advisor, someone with training, someone with experience, they can bring it all together for you much better than any tool online. They know what to ask to help you make the best decision. If you don't have an adviser, we can help you create a strategy. Reach out to us on our website, check in with us here at OmniStar. We're happy to help. Doesn't mean you become a client, but we're certainly happy to get you on the right track. And if you're not someone who is a good fit for our firm, or we're not a good fit for you, we'll at least help you find someone that might be.

So if you haven't already, take a few minutes today to log on to ssa.gov, that's ssa.gov, and review your Social Security statement.

Thanks for tuning in today to We're Talking Money. Be sure to hit that subscribe button if you found this video helpful, and feel free to drop any questions or comments below. I'd love to hear from you, and I'll be sure to answer all of them as quickly as I can. Don't forget to share this with someone that just might be able to benefit from this kind of information, and I'll see you next time on We're Talking Money.