By Craig Erwin, Ph.D.
Photo by Yuliana Marinina on Pexels.com
According to AARP, a third of older Americans have a difficult time making ends meet. And according to the National Institute on Retirement Security, 40% of older Americans have only one source of income – Social Security. The Social Security Administration says that the average Social Security check in February 2023 was $1693.88. This may not seem like much, but it sure beats nothing.
There is a risk that Social Security payments will disappear completely. Politicians have proposed that Social Security be slashed or eliminated. Clearly that would put millions at great risk. Living below the poverty line is one thing, but living without any income is another. Let’s hope cooler heads prevail.
If you have already retired, there is not much you can do to improve your financial situation other than to go back to work. You are probably already doing what you can to limit spending. But if you have not yet retired, you have more options. If you have years or decades till you retire, there is still time to prepare. Save aggressively and invest wisely. Buy and hold stocks, bonds, real estate, and the like.
Don’t end up old and poor. Act now to prevent a horrible future.
Are you planning to lean heavily on Social Security when you retire? If so, are you confident that it won’t be eliminated by Congress? Are you building a nest egg separate from Social Security?
For more information on Social Security and retirement, click on the following links: