When we talk about Social Security benefits in the United States, we are talking about a system that supports a large part of society. For that reason, when that system fails, we find that many United States citizens may find themselves in serious trouble.
In this sense, we could be facing an imminent financial crisis as far as the Social Security trust fund systems are concerned. Thus, without new legislative changes we will find that by 2033 the trust funds will be depleted, according to one report.
This will cause citizens to see a 21% reduction in their retirement benefits. Without a doubt, it could be a tremendous blow to the United States Social Security retirement system, causing many beneficiaries to lose some of their purchasing power.
How do we prepare for the Social Security crisis?
The truth is that there are many ways to prepare for this future Social Security crisis. If we consider that we may have more income or more savings in addition to the Social Security payment, we should:
- Check to see what the reduction in our Social Security payments would be. To do this, it would be best to go to a financial advisor and ask what will happen to our checks if we have this trust fund problem in 2033.
- Analyze the options for applying for benefits. It might be wise to apply for Social Security sooner rather than later if you haven’t already applied. This would assure you a larger check before the 2033 crisis takes effect.
- Increase the payment if you don’t apply. If we don’t plan to apply we should maximize it as much as possible within our means. So try to work as long as possible with a high salary.
To all this we must add something important: saving during all this time can be the key to have the best possible golden age. If we add to that having some kind of passive income to help us live better in retirement, we could live well despite the Social Security crisis of 2033.
