Cuts to Social Security benefits are expected in the future and worry retirees and even those who haven’t retired yet.
Social Security benefits funds may run out by 2033. (Photo: Bloomberg.com)
Cuts To Social Security Benefits
Social Security is an important government program in the US, with over half of households with someone age 65 and older relying on it for 50% or more of their income, cuts to social security benefits may happen in the future and will negatively affect those who depend on it. With cuts to Social Security benefits expected in the future, many are fearing for the worst.
The expected cuts to Social Security benefits are said to be due to the latest report from the Social Security Trustees that predicted that the trust fund will run out by 2033, resulting in only 77% of expected benefits being paid hence cuts to Social Security benefits may just be around the corner.
To prepare for the potential cuts to Social Security benefits, retirees can consider downsizing their homes to reduce expenses and generate income from the equity. Renting extra rooms or getting a roommate can also help increase monthly payments. Additionally, starting a side gig or renting out a car can provide extra money without requiring too much time commitment could help with the effects of cuts to Social Security benefits.
According to a published article by GoBanking Rates, for those who haven’t retired, maximizing earnings and working longer can boost future Social Security payouts and may somehow help with the effects of future cuts to Social Security Benefits. Delaying claiming benefits until age 70 can also increase monthly checks by 24%, potentially offsetting the projected 23% cut which definitely help with the future cuts to Social Security benefits.
Learn To Budget
In a published article by Investopedia, learning how to budget is a great way to be disciplined in terms of your finances. Budgeting can aid goals and measure outcomes. Budgeting is also very beneficial for short and long-term goals.
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