10 Misconceptions About Retirement That Can Hurt You Financially – GOBankingRates

10 Misconceptions About Retirement That Can Hurt You Financially – GOBankingRates

A lot has been made in the press about the Social Security Trust Fund running out, perhaps as early as 2033. However, this doesn’t mean that Social Security is going away in 2033; it just means the reserves will be drained. Retirees will still get their payments from current workers via Social Security taxes.

Granted, this does likely mean a reduction in the amount you may receive from Social Security. Current projections estimate that, without any changes, payouts will drop to 76% of expected levels starting in 2033. 

However, that still gives Congress nearly 12 years to enact changes to restore Social Security to full funding, from raising Social Security taxes to extending full retirement age. While you shouldn’t rely on Social Security to fund your whole retirement, you shouldn’t expect it to completely go away either.

When Social Security Runs Out: What the Program Will Look Like in 2035

Source: https://www.gobankingrates.com/retirement/planning/misconceptions-about-retirement-can-hurt-you/

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