Social Security Benefits Update: What You Need to Know
Those darn click-bait rascals are at it again.
Here is the article headline:
Remember, the news isn’t on your team; they get paid to get you to click, so that’s all they care about. While the headline is accurate, it doesn’t tell the whole story.
We all know Social Security is a vital safety net for millions of Americans, and according to a recent report from the Social Security Administration, the program's trust fund is projected to be depleted by 2035. This means that benefit cuts could be on the horizon.
HOWEVER, if you read the article, you will discover the cut timeline has been pushed back by one year, thanks to a more robust U.S. economy.
So, while the long-term outlook for Social Security is still uncertain, this “I wanna vomit” headline could have read: Due to a strong US Economy, Social Security Cuts Have Been Delayed. It seems simple enough, but research shows negative words get 2.3% more clicks, so we leave them with no choice.
But back to Social Security, let’s take a deeper look.
What's Causing the Problem?
Social Security is funded by payroll taxes. However, as the baby boomer generation retires, fewer workers will pay into the system, and more retirees will collect benefits. This demographic shift is straining Social Security's finances.
What Can Be Done?
Several steps can be taken to shore up Social Security. These include raising the payroll tax, increasing the retirement age, or reducing benefits. All have short-term adverse outcomes, but long-term could be what’s needed and best for everyone, including the overall economy’s health.
What Does This Mean for You?
The future of Social Security is uncertain, but there are a few things you can do to protect yourself:
Educate yourself about Social Security. The more you know about the program, the better equipped you will be to make informed decisions about your retirement. Should you have specific questions about your situation, please don’t hesitate to reach out.
Start saving for retirement early. Take matters into your own hands; don’t rely on politicians (who don’t need Social Security) to vote and do the right thing for your retirement. The sooner you start saving, the more time your money has to grow and the less impact Social Security will have on your retirement readiness.
Consider working longer. Working a few extra years can give your retirement savings a big boost.
Social Security is an important source of income for many retirees. Preparing for the future can help ensure a secure retirement.
Plan, Plan, Plan. The best way to be prepared for retirement and your Social Security decisions is to start planning early and keep your plan active. Social Security benefits have increased significantly over the last couple of years due to inflation. Your retirement readiness projections could have shifted dramatically over the last few years, and without constant planning, you may be making uninformed decisions.
If you have any questions about your Social Security benefits, projections, or retirement readiness, please don’t hesitate to contact us - we’d be happy to answer them!
Shean