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What Social Security recipients should (and shouldn't do) before potential insolvency

What Social Security recipients should (and shouldn't do) before potential insolvency

Summary

A new report says Social Security may run out of money by 2032, leading to a 22% cut in monthly payments for recipients. People who get Social Security or will soon should start saving more, reduce debt, and check their insurance to prepare for these changes.

Key Facts

  • Social Security could become insolvent by 2032.
  • Insolvency means monthly Social Security payments may be cut by 22%.
  • Inflation and higher interest rates make living expenses harder for retirees.
  • Moving money from low-interest savings accounts to higher-yield options like CDs or money market accounts can increase savings.
  • High credit card interest rates (over 20%) mean paying off debt quickly is important.
  • Debt relief options include consolidation loans, management programs, and forgiveness in severe cases.
  • Reviewing insurance can help avoid paying too much or lacking needed coverage, especially for Medicare gaps and long-term care.
  • People 73 and older should review their required minimum distributions (RMDs) from retirement accounts.
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