Let’s face facts. At some point, Social Security is going to run out of money. It’s the consequence of people living longer and having fewer children. Social Security’s trustees project that the program’s Trust Fund will be exhausted in 2033, after which the program will be able to pay out only about 75 percent of projected benefits out of current payroll tax revenue receipts. Even today, Social Security is paying out more in benefits than it takes in.
If you are older, this may not be a great concern. You may not be alive in 2033. But if you are 30 today, you’ll be only 50 in 2033. What if benefits really were slashed 25 percent in 2033?
If you are like most people, you expect to supplement your social security income from savings during retirement. But if those Social Security payments are cut by 25% you can expect to put a much greater strain on your savings and could very well run out of money.
The take-away from this is that many government programs are designed for people who died at an earlier age and who had more children. People in the 30-50 age group need to give very serious consideration to increasing their goals for their retirement nest egg or risk the chance that a government deeply in debt will not be able to provide all it has promised.
Need help in making plans for a really independent retirement? If you plan to retire you need our help. If you plan to retire after 2033 you need our help more.