Jan 25, 2016 7:10 PM GMT
SUMMARY OF THE 2015 ANNUAL REPORTS
...After 2019, Treasury will redeem trust fund asset reserves to the extent that program cost exceeds tax revenue and interest earnings until depletion of total trust fund reserves in 2034, one year later than projected in last year’s Trustees Report. Thereafter, tax income is projected to be sufficient to pay about three-quarters of scheduled benefits through the end of the projection period in 2089....
To make up for the 75% decrease, retirees can defer taking payments initially which then increase payouts by 8% each year deferred.*
So, say in very simple math, you get $1000/month after all those long years of working and paying into the system. If you delay by four years, you'd be getting (compounding by 8%/yr 1360 (which you'd enjoy from that delayed date until year 2034). But now 75% of 1360 is 1,020. So by delaying 4 years, you've negated payments during those years, but increase payments through 2034 by delaying taking payments and then wind up right where you'd have been hadn't any reductions been made at all.
By waiting until 70, you will receive an additional 8% a year for every year past your so-called full retirement age (currently 66 or 67, depending on what year you were born).