Dealing with a reduction in Social Security benefits. Is there a backup plan?
A recent post on the Forum raised the issue of dealing with a cut in Social Security benefits - hopefully an unlikely or very temporary event. However, something still worth planning for.
If the status of SS is not fixed, around 2033 benefits could be reduced by 23-24%. The Committee for a Responsible Federal Budget projects a 24% cut by late 2032 for retirees, equating to an $18,100 annual reduction for a typical dual-earning couple retiring in 2033. That’s significant money.
Have you calculated the possible impact on your overall retirement income? Do you have a backup plan to deal with such a possibility- even if it lasted a few months?
If the status of SS is not fixed, around 2033 benefits could be reduced by 23-24%. The Committee for a Responsible Federal Budget projects a 24% cut by late 2032 for retirees, equating to an $18,100 annual reduction for a typical dual-earning couple retiring in 2033. That’s significant money.
Have you calculated the possible impact on your overall retirement income? Do you have a backup plan to deal with such a possibility- even if it lasted a few months?
The post Dealing with a reduction in Social Security benefits. Is there a backup plan? appeared first on HumbleDollar.
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