What Some People Are Doing (and Not Doing) To Prepare For Retirement Without Social Security

What Some People Are Doing (and Not Doing) To Prepare For Retirement Without Social Security

Social Security is in worse shape than we thought. The program's Old-Age and Survivors Insurance (OASI) Trust Fund is now expected to be insolvent by 2033, a year earlier than anticipated. According to the annual report, its finances have been "significantly affected" by the pandemic and 2020 recession, not to mention "rapid population aging." Indeed, the ratio between contributors and beneficiaries has been shrinking for decades. In 1941, there were about 42 workers for every Social Security recipient. Today, that figure is around 2. 5 workers per beneficiary. A tipping point will occur in 2034: Americans age 65 and over will, for the first time ever, outnumber those 18 and under, according to Census Bureau estimates. It's believed that around 40% of older Americans only receive income from Social Security, and there have been calls to expand the program. I'll leave that to lawmakers to decide. For my part, I'll say that it might make sense just to assume Social Security won't be there when you're ready to retire. Either that, or the income will be even less sufficient than it is now—especially if inflation proves not as "transitory" as Jerome Powell insists it is. I think it's very telling