February 20th, 2012|
2010 represented the first year since 1983 that the Social Security trust began paying out more in benefits than it collected in tax revenue, according to the San Francisco Chronicle.
The Congressional Budget Office estimates that Social Security will be unable to pay all of its benefits by 2039.
Instead of hoping that Washington gets its act together, individuals may be best served by planning for the worst. The worst case scenario is, of course, that the individual won’t receive any Social Security benefits when reaching retirement.
Shifting the mindset to make significant personal changes and to find alternative avenues to ensure an adequate income level following one’s working years is the key.
Here are four ways to offset any Social Security shortfall now and in the future:
1) Live somewhere cheap–smaller houses and towns can be more affordable.
2) Save more for retirement–maxing out the percentage allocated to retirement plans, including employer 401(k) and Roth IRA plans, is key.
3) Save more wisely–investing in low-cost investments can add extra supplemental income over the years.
4) Spend less while working–cutting down on spending for housing, cars, or vacations can have a big impact on retirement savings.
Do you think that these are doable ways to help solve the Social Security situation?