The US Social Security program is facing a financial breaking point. As baby boomers retire and leave the workforce, payroll tax revenue will shrink, putting a strain on the system. The program’s trust funds are expected to run dry as early as 2035. To avoid potential benefit cuts, it’s essential to have a backup plan. One simple approach is to not rely too heavily on Social Security for retirement income.
Many experts recommend saving 15% to 20% of income for retirement. While this may be achievable for some, it’s crucial to set realistic goals and make sacrifices to reach them. Starting slowly and gradually increasing savings can be an effective strategy. Even small increases, such as saving $50 a month or banking raises, can add up over time.
While lawmakers may prevent benefit cuts, the uncertainty makes it wise to save as much as possible for retirement. By starting now and making adjustments to income, individuals can ensure they’re prepared for any potential changes to Social Security benefits.
Source: https://www.fool.com/retirement/2025/02/12/this-is-my-backup-plan-in-case-social-security-cut