Throughout the history of the United States there have never been as many citizens collecting Social Security as there are now. This type of financial help for the elderly, disabled and other groups of people is a relief for Americans. Thanks to Social Security checks, a large portion of U.S. citizens are able to live well on a day-to-day basis.
However, forecasts about the financial situation of Social Security funds are not very good. Many experts say that in as little as 10 to 15 years we will find ourselves with an Administration without funds to pay both the new benefits and those already accepted. So in order to avoid that we must take into account everything related to our retirement.
First of all, we must avoid at all costs relying on the Social Security check alone. Although it is tempting to have no other retirement plan beyond the SSA check, this practice is not recommended. Many Americans who currently only collect their pensioner’s pension could have big problems in the future. Are you prepared for retirement?
Tips to avoid Social Security funding problems
As we have already mentioned, the first thing to do is not to rely entirely on Social Security as the only source of income. Still, this is not the only advice we can have to avoid pensioner funding problems in the future.
Let’s look in detail at each of the tips that can be of great help to Americans. It is important to note that these tips apply to citizens who are already retired as well as to those who have not yet applied for retirement.
It is not good to rely only on Social Security
This advice is one of the most commonly used by expert economists. Collecting only Social Security check and having no other source of income is a mistake. In addition to that, we should also take into account other factors such as savings, investments, etc.
With only the pensioner’s pension as a source of income, we will find ourselves in more than one economic problem in the future. Therefore, we should look for alternative sources of income to help us.
Save while working
Saving while working is important to live as well as possible. If we have an insufficient Social Security check we should have savings. While we are working we can save between 3% and 5% of the salary we earn.
Although it may not seem like a lot of money, after so many years of working it will add up to a lot of money. So don’t think twice and start saving long before you even think about applying for retirement.
Eliminate debt before Social Security
If you’re thinking that your Social Security funds won’t be enough to pay your pensioner’s pension, you should be ready for anything. And that’s why paying off debt before you start collecting retirement is so important.
By the time you receive your retirement check your debts should be eliminated. And not just because you may run into funding problems in the future, but because your Social Security check will always be less than your salary as a worker.