It is forecasted that in the year 2033 Social Security will only be able to pay 70% to 75% of the scheduled promised benefits when an individual is ready to retire. And as if the news about Social Security isn’t bad enough, Medicare’s hospital insurance fund is expected to run out starting in 2024. So now what??
For those of you who are already retired, you will not be affected by this shortfall. But anyone who is expected to retire in 2033 and beyond should start preparing for retirement now. Regardless of your current financial situation, it would be extremely prudent to take a good hard look at where you can cut costs in order to put away more towards your retirement years. The bottom line is that it is up to you to take care of your retirement future because the federal government does not have a plan or a solution in place at this time, in order to make up for the difference in benefits. You are on your own.
Here are some options to consider about helping build up your retirement egg:
- If you don’t have a retirement plan in place, begin one now.
- If you do have a plan, increase the amount that you put into your retirement benefit.
- Invest diversely – Stocks, IRAs, annuities
- Consider purchasing long-term care insurance when the rates are good in your 40s and 50s.
When that retirement day comes, you may want to consider these options:
- Raised your retirement age and delay in taking your Social Security benefit.
- Work part time to subsidize your benefit amount.
- Consider ways you can turn assets into income such as a home equity loan or reverse mortgage or cashing in the cash value of a life insurance policy.
- Consider relocating to a “no individual income tax” state.
Surely, a fix for this problem will have to come sooner or later, but the question is whether Congress will do it in a sensible way with strategic planning or will they be driven to fix this by a crisis. Whichever one occurs, it is still wise to have your own retirement contingency plan in place.
Here at Donald J. Medeiros Insurance Agency our goal is to try to help our viewers by suggesting solutions for all insurance needs. By no means can we address each reader’s specific concerns in every incident. So, we strongly advise to check with an insurance representative to address your specific needs. However, you can also contact us for any questions or concerns and we will be happy to help you. We are able to offer a complete line of personal & commercial insurance products for all of Massachusetts, Rhode Island and New Hampshire.
Come visit us at www.donmedeirosinsurance.com or give us a call at 508-678-1271. We look forward to hearing from you! If you have a Facebook account, fan us at www.facebook.com/donmedeiros.