Social Security benefits may face cuts by 2035

Social Security may face cuts in the future, and this has raised concerns for many. The program is expected to owe more in benefits than it collects due to a decline in the workforce, as many baby boomers retire. While Social Security can use its trust funds for a while, these funds may run out by 2035. This could lead to benefit cuts, so it’s wise to prepare. Here are three actions you can take if you are worried about potential cuts. First, consider saving more for retirement. Social Security was not meant to be your only source of income in retirement. By saving more, you can help buffer against any cuts. Take advantage of your employer's matching contributions in your 401(k). You may also want to invest more aggressively for better growth. Options like a Roth IRA can allow you to withdraw funds tax-free, helping to offset any reductions in Social Security. Second, think about working during retirement. Many believe work and retirement should not mix, but part-time work can provide extra income and social interaction. You can work and still collect Social Security, but there are rules regarding earnings before you reach full retirement age. Nevertheless, a job can be enjoyable and financially beneficial. Lastly, consider delaying your Social Security claim. Although you might want to start receiving benefits as soon as you turn 67, waiting until age 70 can significantly increase your monthly payments. This wait could mean higher benefits even if cuts occur. While benefits cuts are not guaranteed, preparing now can help you have a more comfortable retirement.