See the news last week?
A stunning report projects Social Security will run out of money sooner than expected.
Just a few years ago, the projected depletion date was 2035. Then, it was revised to 2034. Now, it’s been revised again — to 2033.
Today, I’ll explain how dire this situation is…
Then I’ll offer some much-needed hope.
A Catastrophe in the Making
Social Security is one of the foundational social programs in the U.S. It provides monthly income to roughly 70 million people.
Here’s how it works:
Money taken from your paycheck today is used to fund current retirees. Then, your retirement will be funded by tomorrow’s workers.
At least, that’s how it’s supposed to work. But since 2010, Social Security has been operating at a loss — i.e., it’s been paying out more money than it’s been taking in. And now, according to its trustees, Social Security will run dry by 2033.
The Lifeline for So Many People
Monthly income from Social Security isn’t just a “nice to have.” For many, it’s all they have.
Consider the stats:
- In 2022, Social Security made up at least half the total income for 38 million people.
- For 26 million people, it made up three-quarters of their total income.
- And for 16 million people, Social Security was their only source of income.
Social Security was originally designed to supplement a person’s retirement nest-egg.
But according to recent research, more than 60% of Americans have less than $50,000 saved for retirement. And 20% of those over age 50 have no retirement savings at all. Zero.
Now, if you’re sitting on a multi-million-dollar nest-egg, that’s great.
But if you’re behind on your retirement plan… if you’re worried you won’t have enough… if you’re counting on Social Security to pay your bills… you need to pay attention.
Things might seem hopeless, but they’re not. You just need a new plan…
A New Plan
The reason Social Security is so valuable — the reason it’s critical to so many people — is that it provides steady monthly income.
So if Social Security ceases to be a viable option, you simply need to find new ways to generate steady income.
Now, sure, you could:
- Buy public stocks that issue quarterly dividends.
- Invest in bonds that offer monthly payouts.
- Or put money into an income-focused annuity.
But I’ve got a better idea. It’s an opportunity to invest in income-producing assets in the private markets — where yields can be 8%, 10%, 12% and even more.
Furthermore, you can get started by investing just $100 here or $100 there.
This is how to set yourself up for retirement success… even if Social Security runs dry.
And in my next issue, I’ll tell you all about it.
Happy investing.
Best Regards,
Editor
Crowdability.com
