Is social security going to be there when you reach retirement? This is easily one of the most common questions I get when I meet with clients.
The data on this is scary. The social security trust fund is in massive trouble.
Social Security Is In Big Trouble
We have 32 trillion dollars in unfunded liabilities and it will be exhausted by 2034. When that goes away we are relying on tax dollars.
Something is going to have to give.
No matter what ends up happening, we know social security is going to change. It has to.
It's our job to be ready regardless of what social security looks like because you cannot plan for the current scenario to remain true when you reach retirement.
To replace social security in your plan, you have to understand its full benefits.
What does social security do for your retirement planning?
Most importantly it guarantees you income every month.
Now, to account for a plan without social security, you must find a way to secure guaranteed income.
You can create guaranteed income if you are able to create a pension that isn't tied to the market or social security.
Of course every personal financial plan is different, but there are situations where a portion of your money can go toward an immediate annuity (aka. an income annuity.)
There are lots of types of annuities, but this guarantees you a life-time income.
This creates liquid funds for when life happens, and give you peace that exists outside of market performance.
Bottom line: You have to look into different ways to access guaranteed income, because social security isn't going to be the same tomorrow as it is today.
Some popular options to create income outside of social security include:
- Income Annuities
- Rental Property Income
You can't rely on money in the market.
You can't rely on social security.
You have to have a plan that creates income.
Your retirement shouldn't be full of anxiety. That isn't why you are working so hard today.
Do you have diversified income as part of your financial plan for retirement? If not, you need to find ways to create income outside of social security.
I'd love to talk about your plan for income and how easy it is to have a plan that gives you financial peace.