The Social Security trust funds are expected to run out by 2033, so people who depend on Social Security are looking for other ways to make money and deal with this inevitable future situation. Three-quarters of people who get Social Security today (36%) say that their payments are less than what they thought they would get when they were working.
It’s possible that things will get worse. The Social Security Administration says that future seniors should expect their payments to drop by 23% if nothing is done to make the country’s retirement program stronger.
This word is getting through to today’s seniors. A recent poll by the Nationwide Retirement Institute asked 1,000 Americans between the ages of 60 and 65, some of whom are retired and some of whom are not yet retired, what they think will happen to Social Security in the future.
On the other hand, only 41% of those who answered said they thought Social Security would stay the same when they retired. The rest don’t believe in Social Security or don’t think it will last that long.
6 things beneficiaries should know about when benefit cuts begin
Get a second job to supplement your income
Four out of ten people who said they didn’t think Social Security would last said they planned to use it. When your nest egg suddenly shrinks, the best way to rebuild it is to find a new source of income.
They shouldn’t give up if they need money but don’t want to go back to work full-time. Even a part-time job or side business could help you make up the difference in your Social Security salary if the government cuts it.
Make a budget to reduce spending
34% of people who said they didn’t think Social Security would last said they planned to keep it. If your income drops out of the blue, you may need to be much more careful with your spending. A budget can help you do this.
Make investments or use savings
Some 31% of people who said they didn’t think Social Security would last said they planned to keep it. If the government drastically cuts Social Security payments, people who worked hard all their lives and saved for retirement will be very glad they did.
To make sure that investments and savings will last in retirement, you need to come up with the best exit plan. If all of this seems too much, you might want to talk to a financial advisor. They have a job to look out for your best interests.
Relocate to a place where living expenses are lower
About 29% of people who said they didn’t think Social Security would last said they planned to do this. The price of living has gone through the roof in many parts of the US, especially the price of buying and owning a house. If a retiree moves to a cheaper place, they may have some extra money when their Social Security benefits start to go down.
Downsize your home
About 22% of people who said they didn’t think Social Security would last said they planned to do this. A tried-and-true way to cut down on retirement costs is to move into a smaller home.
This plan works really well for people who live in areas where homes are going up in value quickly and have big homes. If this happens, you might want to sell your house and move to a place where you can get a smaller house for a lot less money.
Leave a smaller inheritance than expected
People who don’t think Social Security will last say they plan to do this 21% of the time. It’s good that you want to leave a memory for your loved ones, but you should take care of yourself first.
Remember that if you don’t pay for your own things, someone else will have to, and that someone else could be one or more of the people who get your money when you die.
Also, don’t beg your family and friends to take money out of their savings to help you. Pay off your debts with your own money and be okay with the fact that you might not leave as much as you had planned.
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