Without Social Security, Elderly Poverty Rate Would Be More Than Four Times As High

Without Social Security benefits, the elderly poverty rate would be more than four times as high and about 40 percent of Americans 65 years of age and older would have incomes below the poverty line, finds a report from the Democrats in the Joint Economic Committee.

The report also found getting rid of Social Security would cause 15 million seniors to fall into poverty.

Social Security benefits don’t just help out beneficiaries, but also their family members and the American economy as a whole, according to the report. The report goes on to say Social Security is under attack and its existence is being threatened, that’s why “families need Congress to protect their access to this vital program.”

2 in 3 Future Retirees Don't Understand Social Security

2 in 3 future retirees say they don’t understand Social Security benefits, finds a Nationwide Retirement Institute study. According to the survey, 57 percent of future retirees and 75 percent of recent retirees think they are eligible for Social Security benefits sooner than they actually are.

The study also found a third of future retirees plan to take out benefits early because they think Social Security won’t be around when they reach full retirement age.

Future and current retirees and those who have been retired for ten years or more all report they expect to spend or are spending the majority of their SS checks on groceries.

Auto-IRAs May Help Increase Retirement Benefits

People with auto-IRA accounts could see their Social Security benefits increase by nearly 7 percent to slightly more than 8 percent, finds a Pew Charitable Trusts study. The study looks at how retirees can benefit from using savings from auto-IRA accounts to delay claiming Social Security benefits.

As you may know from watching previous Retirement News Today stories, delaying Social Security benefits usually means larger monthly checks down the line. According to the study, more states are looking to provide auto-IRA programs and if state-sponsored programs are put into place, after 31 years, almost 40 percent of participants could delay claiming Social Security by a year or more, with one-fifth being able to delay for at least two years.