By Wendy Waugaman, CEO & President, American Equity Investment Life Holding Company
A new government report says Social Security reserves could be exhausted by 2033. You can read more about the report in a Wall Street Journal article from Monday. We’ve seen concerns about the future of Social Security for years, and this report doesn’t exactly bring reassurance. It’s unclear if Social Security will support Americans’ retirement plans for the next generations in the way it has traditionally been used. So what does it all mean for consumers?
According to the article, benefits would be cut by a quarter if Social Security funds are exhausted, meaning it’s more important than ever for consumers to take control of their retirement. What’s more, the Medicare fund that pays for hospital benefits is projected to be exhausted by 2024. With the uncertainty of Social Security and the stock market, not to mention the disappearance of pensions and ever decreasing benefit plans, people need to have a strategy for saving both for their retirement and health care. Since there will always be uncertainties, no matter what kind of economy we’re in, eventual retirees need to consider keeping at least a portion of their funds in safe money options.
It’s never too early—or too late—to start planning for retirement. If you need a place to get started, use the tools on our website and other trusted sites to gather information. Talk with family and friends you trust to see what financial professionals they may be using. Peace of mind can come with figuring out how to navigate finances for retirement! And if you’re looking for a product that can help you balance your financial plan, you can learn more here.