Private pensions are almost gone

A couple of decades ago, many big employers came up with a “defined-benefit” pension, which guaranteed retirees and their spouses an agreed and fixed monthly payment for the rest of their life. However, times have changed, and traditional pensions seem to have taken a walk down memory lane.

If you want to secure your retirement years, you could always save more money! After all, without a pension, that’s your best choice. Make sure you read everything you can about the basic rules of retirement saving, such as minimizing taxes, and expenses, working longer, and maybe even investing once in a while!

Social Security is still under a lot of pressure

Unless Congress decides to act on it, the Social Security Trust Fund reserves will run out by the end of 2033, as the Social Security Administration explained. Costs seem to be outpacing revenues because of the rapidly aging population. Even if lawmakers might address the broader issues, the amount of money you might get depends on when you start claiming it.

You have to be strategic when claiming Social Security, as most people might claim their Social Security benefits at 62 years old, which is as soon as they’re allowed to access these benefits. In our opinion, that’s not always the best strategy.

Dorothy