Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Dennis Snoozy - Social Security Benefits

Retirees are Worried About Their Social Security Sponsored by Dennis Snoozy

As per Dennis Snoozy, today, millions of seniors depend on their Social Security as a critical source of their income. But according to the latest data, federal retirees are growing more worried about their social security. 

According to this year’s data collected from the Employee Benefit Research Institute, only 45% of the retirees believe that Social security will give them the same benefits as it used to provide earlier. This percentage dropped from last year’s 51% of retirees who thought the same. The main question of concern remains: Are seniors becoming overly pessimistic today? Or are they really up to something?

The future of Social Security may be Shaky but is comparatively certain.

As per Dennis Snoozy, many federal workers and near-retirees believe that the Social Security program may go bankrupt. The reality of this program is that it can never run out of money because it is driven by payroll taxes. That means, as long as we have federal workers who pay taxes, senior retirees can never suffer losses and will thus, receive benefits in some form or the other.

According to the latest reports from the trustee, the trust fund of Social Security may run out in 2034. If that situation comes, the program might cut down benefits by 23%, which might give a significant blow to current and future benefit recipients.

Congress has more than a decade and a half to work on this problem and fix it. Lawmakers will lose and may have to sit back and do nothing.

But even if Social security benefits aren’t cut or reduced, the recipients will still face a severe problem: Social Security is making no records of senior spending. The meager increase in cost-of-living of this program has really not done a great job of helping beneficiaries balance their buying power in the hours of inflation, because those type of turns have been minor or we can say never existed in recent years, and also because they get consumed by rising Medicare premiums before seniors get them according to Dennis Snoozy.

All of these circumstances mean today’s workers who are depending on the benefits of Social Security in retirement will have to move carefully and stop depending on those benefits, and start saving for your future instead. Otherwise, you would end up nothing but face a major financial crisis.

Building your nest egg

As per Dennis Snoozy, we need to clear out one thing here that the Social Security program was never meant to sustain seniors on its own. If everything goes well, that means no future cuts, then also those security benefits can replace about 40% of the pre-retirement income of an average worker. Most seniors are urged to double that amount to live after retirement peacefully. It’s, therefore, your responsibility to maintain your savings to get maximum out of your Social Security.

Now the good news for seniors is that today’s annual contribution limits allow serious about saving in a 401(k) or IRA. Workers who are of age under 50 can save up to $18,500 a year in the former and $5,500 in the latter, and these pre-set limits can be increased to $24,500 and $6,500, respectively, for workers 50 and older.

Well, we understand that every senior can’t save max out a 401(k) or even an IRA year after year, but he or she can commit to keeping a decent sum of cash each month and use that money wisely to save a considerable amount of wealth. If you are 37 with no savings and start keeping $400 a month aside until age 67, let’s suppose you invest heavily in stocks and are able to generate an average annual 7% return on your savings. At the end of the day, you’ll save $453,000, which, when combined with your Social Security benefits, could give you a handsome retirement amount. Now, if you increase your monthly savings rate to $600, you’ll have $680,000 to retire with.

According to Dennis Snoozy, this way, you can take maximum advantage of your Social Security benefits. Make sure you wait until your full retirement age to get maximum benefits. Your age should be 66, 67, or somewhere in between. Do you know, if you can hold off your benefits after your full retirement age, then your benefits will automatically increase by 8% each year you delay up until age 70, and this increase will stay in the rule for the rest of your life?

You don’t have to stop fighting for your raises during your career. The more money you can earn from the job you have, the more benefit you get after your retirement.

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