Many older adults count on Social Security as supplemental income for retirement.
For years, we’ve heard the government-run program isrunning out of money.
President Donald Trump’s proposedplan to cut Social Security taxescouldspeed up this timeline.
Regardless of what happens with Social Security next, don’t rely on it to cover your retirement.
Read more:Do You Have to Pay Income Taxes on Social Security?
Everything you oughta Know
How do Social Security earnings work?
The money you pay inSocial Security payroll taxesgoes directly to current beneficiaries rather than into a personalsavings accountfor you.
you’re able to use theSocial Security benefits calculatorto estimate what you’re expected to receive.
Yes, it’s likely that Social Security will be around when you retire.
However, you may not receive the full benefit offered to current retirees.
After that, retirees would receive 83% of their scheduled benefits.
What could that look like?
As of January 2025, theaverage Social Security payoutis $1,976 per month.
If you were to receive 83% of that, it would drop to $1,640 per month.
Is Social Security enough to fund your retirement?
Most people count on Social Security to help fund theirretirement savings.
Don’t rely on Social Security alone.
My first step doesn’t require investing any money at all.
It’s an automatic way to earn extra money for retirement without much effort.
If you’re 50 or older, you’re able to contribute an additional $7,500.
The max IRA contribution limit for 2025 is $7,000.
Whether a Roth or traditional IRA makes sense depends on your estimated tax rate now and in the future.
Owning your home outright gets rid of one of your biggest expenses.
This sounds like a lofty goal, but it’s possible.
I focused on paying off$300,000 of debt, including my home, in three years.
Every bit can bring your balance down.
We’ve saved tens of thousands of dollars in taxes, car insurance and living expenses each year.
We also downsized in Charlotte and decided to rent.
The money we would have put toward home repairs and upkeep has freed up extra money for us.
Take advantage of health savings accounts
Health care is one of the biggest expenses in retirement.
So investing in your health now can save money later.
Then it’s possible for you to use your take-home pay to focus on your retirement plan.
The worst thing you could do?
Assume Social Security will cover everything.
Instead, start planning today.
