3 Reasons Why You Need Savings To Supplement Social Security Services | Personal finance
3 Reasons Why You Need Savings To Supplement Social Security Services |  Personal finance

3 Reasons Why You Need Savings To Supplement Social Security Services | Personal finance

With the value of benefits eroded every year, seniors constantly losing ground. As a result, when you reach early retirement, your standard of living will have dropped dramatically if you do not have plenty of other income to compensate for what social security cannot cover.

3. It is possible that changes may be made that end up cutting the benefits

Finally, the financial situation of Social Security is somewhat dangerous.

While retirees are likely to never completely stop receiving benefits, the Social Security trust fund is dependent on covering benefits that cannot be paid out of current revenue collections, no doubt in trouble. It’s scheduled for run out in 2034 if legislators do not act. If no changes are made, an automatic reduction of 22% in social security income can take effect.

Reaching an agreement on how to solve this problem has proved difficult, so the federal government has not yet found a way to support social security. And the longer legislators wait to act, the harder it becomes. Unfortunately, most proposals involve some changes that may end up causing a de facto reduction in benefits. Changes may include raising full retirement agewhich would force future retirees to wait longer to commence their checks to avoid a reduction in benefits due to early imposition of sanctions.

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