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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