Are you worried about running out of money before retiring on Social Security? While it’s true that the program is facing financial challenges, there are steps you can take now to ensure a sustainable retirement.
Social Security should not be your sole source of income in retirement. According to Constance Craig-Mason, a National Social Security Advisor, most people rely too heavily on the program and neglect their own retirement savings.
So, what’s the solution? Here’s a proactive plan to help you build a secure financial future:
1. **Review your options and set up a retirement fund**: Start by reviewing your current financial situation and setting up a retirement account. You can take advantage of employer-matched plans, such as 401(k) or IRA, to grow your savings faster.
2. **Max out your employer-sponsored plan**: Contribute as much as possible to your employer-sponsored plan before investing in other accounts. This will help you earn extra money for retirement with minimal effort.
3. **Open an Individual Retirement Account (IRA)**: If you reach your 401(k) limit, consider investing in a traditional or Roth IRA. The max contribution limit is $7,000 in 2025.
4. **Put extra money toward your mortgage**: Eliminating steep expenses like high-interest debt and mortgage payments can stretch your Social Security income further.
5. **Lower your housing expenses**: Consider relocating to areas with lower taxes and housing costs or exploring alternative neighborhoods in your current area.
6. **Take advantage of health savings accounts**: Investing in your health now can save you money later by reducing healthcare expenses.
By taking control of your finances, you’ll be better equipped to handle any uncertainty surrounding Social Security. Remember, assuming the program will cover everything is a recipe for disaster. Start planning today and build a sustainable retirement plan that aligns with your well-being.
Source: https://www.cnet.com/personal-finance/im-worried-social-security-will-run-out-before-i-retire-what-should-i-do