Suze Orman Slams Social Security 'Fearmongering' – 'You Really Think Washington Is Going To Do Nothing And Cut Benefits By 25%? C'mon'

Social Security has always been a hot topic, especially as retirement looms closer for millions of Americans. Add headlines about the program potentially running out of money, and it's no wonder people start to panic. 

But in a 2021 blog post, financial expert Suze Orman tackled these fears head-on, calling out what she describes as "fearmongering" about Social Security's future. Her take? Stop worrying about the worst-case scenario and focus on making smart decisions for your retirement.

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In the post, she addressed a common worry: Social Security is "going broke." According to some reports, the program could face a funding shortfall by 2034, potentially reducing benefits by 25%. Orman believes these predictions are overblown.

"You really think Washington is going to do nothing and just cut benefits by 25% for a program that is so essential and popular? C'mon," she wrote. She noted that during Social Security's last financial trouble in the 1980s, Congress phased in changes over time rather than slashing benefits immediately. "There are plenty of rational choices Washington can make," she added, reassuring readers that lawmakers are unlikely to ignore such a crucial issue.

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Orman's blog wasn't solely about debunking myths but also about helping people make better decisions about their benefits. One of her biggest frustrations? The fact that only 10% of people wait until age 70 to start claiming Social Security, even though delaying it can significantly boost monthly payments. She explained that waiting until 70 could mean a payout up to 76% higher than starting at age 62.

A common concern many people have is the fear that they won't live long enough to make delaying Social Security benefits worthwhile. Suze countered this by pointing out that life expectancy statistics tell a different story. "A 65-year-old woman today in average health has a 50% chance she will still be alive at age 88. For a man, it's age 85," she noted. For those who live well into their 80s or beyond, the higher payouts from waiting can make a huge difference.

For Orman, the math is clear: "Stop worrying about dying earlier. The risk you should be planning for is living a long life!" She urged readers to consider their Social Security benefits an "insurance policy" against outliving their savings. 

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Another common concern is that people don't want to work until they're 70. Orman quickly clarified that delaying Social Security doesn't necessarily mean working longer. Instead, she suggested tapping into other income sources, like a 401(k) or IRA, to cover expenses while waiting to claim benefits. She even floated the idea of taking on a part-time job to bridge the gap, emphasizing many people’s flexibility when planning their retirement strategy.

While Social Security faces challenges, Suze believes in the program's resilience and the likelihood of future adjustments to address funding issues. More importantly, she wants people to focus on what they can control, like maximizing their benefits by delaying when possible.

Orman’s advice is worth considering if you're unsure when to claim your Social Security benefits. But it's also a good idea to consult with a trusted financial advisor who can help you evaluate your unique situation. With so much at stake, making a decision based on facts – and personalized guidance – rather than fear might be one of the smartest moves you can make.

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