It is unclear if Social Security retirement benefits will be accessible to today’s millennial workers when they retire. By 2034, it is expected that the Social Security trust fund would run out of money, as it is currently paying out more than it produces.
However, because it is a pay-as-you-go system financed by payroll taxes, future retirees can anticipate receiving their benefits — just don’t bank on it.
Unfortunately, the majority of Americans do not save money. The median retirement account balance for 55- to 64-year-olds is roughly $120,000, translating to a monthly retirement income of only $1,000 spread over 15 years. One-fourth of the US population has no retirement savings.
Therefore, whether you receive Social Security or not, how can you ensure that you have enough money to live a comfortable retirement?
The Following Are Five Proposals
1. Invest Your Capital
It’s wonderful to have a healthy savings account. It is critical to have funds set up for unexpected bills and significant purchases. On the other hand, a low-interest deposit account will not grow quickly enough to fulfil your retirement needs.
2. Acquire a Comprehensive Employer Match
Numerous employers will match their workers’ retirement contributions, enabling you to attain your savings goal much faster.
3. Maximize Your HSA
If you have a high-deductible health plan, fund it to the brim and invest the remaining.
HSAs are by far the most tax-efficient option to save for future medical expenses,” Thiederman explained.
- A Check in the Amount of $4,194 From Social Security Will Be Sent in the Next Week.
- The Following Social Security Recipients Will Get an Additional $200 in January.
- COLA Increase and Other Important Social Security Decisions to be Made This Year!
4. Pay Off Debt
If you owe money on a car, school loans, credit cards, or a mortgage, make a concerted effort to pay them off prior to retiring.
5. Create and adhere to a budget.
Finally, it is critical to review your money methodically and identify the best use of each dollar.