Ramsey Solutions personality Jade Warshaw breaks down how to get the most out of your Social Security check and more on “The Bottom Line.”
Do you feel secure after retirement?
With Social Security benefit cuts looming in 2033, Ramsay Solutions’ Jade Warshaw explains how you can set yourself up for success.
“If you’re trying to make the jump from work to retirement, don’t use Social Security as a parachute,” the personal finance expert stressed in an interview on “The Big Money Show” on Tuesday.
Social Security Fund heads toward bankruptcy without fixes
Warshaw pointed out that relying solely on Social Security in retirement won’t provide complete protection, since benefits only cover a portion of your income.
“As it stands, it will only account for 40% of what people are used to making.”
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According to the Social Security Administration Directors Annual Report 2024; Benefits are projected to become insolvent by 2033. Without legal changes, benefits would be cut by 21%.
As the 2033 deadline approaches, Mr Warshaw warned that benefits “may no longer exist” and offered advice to those seeking financial security in retirement.
“So I say to Americans, listen, set yourself up for success.” I’m telling you to give me some grace.” [income] That way, you can invest 15% of your gross income each month to create a secure retirement fund for yourself. ”
Social Security benefits are expected to become insolvent in 2033, according to the Trustees’ annual report. (St. Petersburg)
Warshaw also echoed personal finance expert Dave Ramsey’s advice that people who plan to collect benefits at age 62 should do so as long as they are invested.
”“If you turn 62 and say, ‘Listen, I don’t need Social Security, I have my nest egg,’ then yes, take that money quickly,” she said. .
However, she warned that raising benefits early would result in lower distributions, but ultimately Mr Ramsay’s advice was that benefits should be invested despite raising benefits early. agreed.
This is extremely important for a “rich life” after retirement, says a personal finance expert.
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For those who need “every corner” Regarding this benefit, financial experts have come up with a solution. That is, he should wait until he is 70 years old to get as many distributions as possible.
“For some people, there may be small ways to do both, allowing them to continue working and still receive Social Security benefits.”
As for receiving benefits while employed, “be aware that there are limits to how much you can earn without being penalized,” she added.
