4. Social Security is still under pressure
According to the Social Security Administration, the Social Security Trust Fund reserve is expected to run out in 2034, meaning that those who will retire around that time have to really watch out and take a good long look at their finances. This is all happening due to a rapidly aging population that is causing costs to outpace revenue.
It doesn’t mean that there will be absolutely no money left for your retirement, however! It is simply expected that there will be less as fewer younger workers will be paying taxes that will go towards Social Security and more elders that will benefit from that money.
What’s the solution to this problem? Being strategic with your Social Security is the first step. You can claim your benefits when you turn 62 but you’ll lock yourself in receiving less money on a monthly basis if you do- that’s because your benefits will be stretched thin and have to cover a longer period of time. Your benefits, however, will remain ‘normal’ if you retire when you reach your full retirement age, based on the year you were born. But you will also receive more every month if you wait until you’re 70.
All in all, if you can handle working for a few more years then it’s best to do so. Find a strategy that works well for you and maximize your earning potential before you’re ready to exit the workforce.
