04 Sep No Benefits and Retirement
For those who are not aware or are not as informed on the relationship between your retirement fund and Social Security and the benefits that come with it, there is a possibility that these benefits get completely revoked or cut out. This will harm and put many of those who need help in terrible situations and the best way to prepare for such a disaster is to get informed on how it would happen and what to do.
There is actual reasoning behind why something like this could be possible and it makes sense when you look at it from a different perspective. They are not just cutting benefits for no reason or to stop helping those in need, the reasoning is because of payroll taxes. The Social Security Administration has it setup so that those recipients of Social Security will be funded from payroll taxes. Payroll taxes are taxes paid by both employees of a company as well as the employers.
They are taxes taken out of their payroll, it is exactly what you think it would be. That being said, with a rising amount of people retiring and a lower overall payroll tax fund, the SSA is expecting great trouble to appear and not be able to pay out in full all of these benefits these people who retired are in need of and could get rid of it all together. Now some of you may be in total shock or fear at this, but there is some good news to think about. The odds of this likely happening are not as great as it seems and it is not the end of the world, there are some things you can do that will help set yourself up if social security is to get cut and you have no retirement funds.
One of the first things to think about is possibly working for another line of income to have. By this we mean to have a side gig where you can make and earn extra money that will help you. Working for at least 35 years helps in deciding the amount of benefits you receive so if you are to work another gig whenever possible in your working years, the benefit amount you receive once retiring can be drastically higher and you will be grateful you chose to do so.
Another helpful tip is working till full retirement age. By doing so, you will help to receive the appropriate monthly payments you should be receiving. If you cut it short your monthly benefits will be reduced significantly so keep this in mind! Also be mindful of your family. Including them can help with additional benefits if you are to have a child under the age of 19.
Making sure you work at least 35 years is one of the best tips we can offer. Social Security will use your best years of income earned within these 35 years to calculate an average and create your benefits amount. If you are to not work the full 35 years, your amount will be shortened because your average was not as high due to years of no working income.
The more years you are able to work and the further you can push back your retirement, the better of you will be. Do not worry about the chance of Social Security and retirement benefits being completely cut, the odds are not likely. That being said, make sure to prepare in case something like so were to happen.