A recent Bankrate survey found that the majority of Americans are worried about the future of Social Security once its retirement trust fund runs out in 2033. Concerns are especially high among older non-retired adults, with 81% of baby boomers and 82% of Gen Xers fearing they won’t receive their benefits. Even younger generations, like millennials and Gen Zers, are also worried, with 69% and 62% expressing concern, respectively.
Financial advisors are recommending that retirees delay claiming Social Security benefits until age 70, as this allows individuals to receive a higher payout. While questions about Social Security’s future persist, advisors believe that lawmakers will address the trust fund depletion before the deadline. Social Security benefits, being adjusted for inflation, are seen as important as a form of “longevity insurance” that can help retirees avoid running out of savings.
Despite the reliance on Social Security, older individuals, especially baby boomers and Gen Xers, are expecting to depend on the program for a substantial portion of their retirement income. To avoid relying too heavily on Social Security, experts recommend saving early and for longer periods. However, for many Americans, saving for retirement is not a top priority due to current economic concerns like inflation, healthcare costs, and housing affordability.
In conclusion, while uncertainties about the future of Social Security persist, it is important for individuals to plan and save for retirement to avoid potential financial struggles in the future.
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