According to an Old-Age, Survivors, and Disability Insurance (OASDI) program annual report released by Social Security and Medicare trustees, the Social Security system is projected to run out of money in 2034—a year earlier than previously estimated.
Many blame the COVID-19 pandemic and the economic recession that followed for the rapid depletion rate. The report revealed that the pandemic ‘significantly affected’ the funding that will be used to pay the benefits, driven by a considerable drop in employment and a decrease in payroll tax revenue.
The deadline is soon approaching, which is likely to impact every citizen—those not currently enrolled in Social Security and many who already are. The retirement trust funds will only be able to pay full benefits until 2033. It is estimated that starting in 2034, the Social Security trust fund will be depleted and will only be able to pay 78% of the promised benefits to retirees and disabled beneficiaries.
As of 2020, the Social Security office reported that 65 million people are receiving Social Security benefits, and nearly 63 million people are covered by Medicare, which indicates a vast majority of US citizens who currently rely heavily on this benefit.
Congress has long delayed addressing this long-term shortfall, even though trustees urged legislators to act sooner rather than later. Lawmakers could have increased payroll taxes, reduced benefits, or carried out a mix of actions to prevent this result. Even though Joe Biden campaigned on expanding Social Security benefits, his economic plan has ignored the recent devastating news of this entitlement program.
Who Will Be Affected the Most?
Social security funding impacts mostly the youngest workers as well as those with higher incomes, as these two groups are the main contributors to the fund and as well they reap the fewest benefits. Retirement-age individuals will have huge concerns with this news and will be seeking answers as those are the people that have paid into the program for years.
As such, if you plan to retire within the next decade, it is crucial to make the most of your retirement plan during this critical time. It is important to boost your retirement savings as much as you can while simultaneously paying off debt and keeping expenses low. Social Security payments alone generally cannot cover a mortgage payment or living expenses unless you have zero debt.
How To Combat Social Security Cuts with A Gold IRA 3-Step Process
You have the ability to diversify your portfolio with precious metals. With the help of Reagan Gold Group (RGG), a Gold and Silver IRA can help combat this disappointing news for retirees. We offer three simple steps toward a Gold and Silver IRA in order to hedge against the current 2022-2023 economic recession we are in. Below are the three steps you can take today to preserve your financial portfolio for tomorrow:
Step 1: INITIATE
Our Reagan Gold Group IRA Commodity Specialist guides you to complete the IRA Admission form. This form helps us individualize your portfolio to serve your unique needs.
Step 2: FUND
After your personalized custodial portfolio is set up, we turn on your spending ability by adding funds to your account. You can add cash to your new precious metals IRA by direct transfer, rollover, or contribution.
Step 3: CUSTOMIZE
Once your Gold and Silver IRA account is funded, you can purchase IRA-eligible metals through our Reagan Gold Group IRA Commodity Specialist. Your physical assets will be delivered safely to a secure vault at a depository that is approved to hold precious metals for IRA accounts.
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