I’ve heard the Social Security Administration is in trouble. With this in mind, shouldn’t I claim my benefits as early as possible?

I personally do not think the extreme outcomes discussed in the media will happen, especially for people over age 55. There could be a reduction in benefits in the future, but that reduction would probably apply only to people younger than 55 years old. Even so, I believe a benefit reduction is unlikely because there are a number of simple fixes the government could employ to put the Social Security system on sound financial footing for the next 75 – 100 years.

What if I pass away before claiming my benefits?

Unless you are in poor health, the odds that you will die before claiming your Social Security benefits are extremely low. For married couples in relatively good health at age 62, the probability of at least one spouse living to age 66 is 99.8%. The probability is 98.6% that one spouse will live to age 70. Another way of looking at these statistics is to consider that there is less than a 2% chance that both the husband and the wife will die before they reach the ages of 66 or 70. Chances are, you are going to live longer than you think – it’s best to be financially prepared for a long life with a maximum Social Security benefit.

What does PIA stand for?

PIA, also referred to as your Work History Benefit, stands for Primary Insurance Amount. This is the benefit most people are familiar with – the monthly checks you will receive for the rest of your life from Social Security at your Full Retirement Age. The size of your PIA is determined by the number of years you worked, the amount of money you made, and the amount of Social Security taxes you paid over your entire career, which are usually called payroll taxes or FICA.

You can create a free account on the Social Security Administration’s website here and they will provide you with your PIA.