Here’s What You Need To Know About The Future Of Social Security: Darcy Bergen’s Thoughts
The number of Americans who will qualify for social security is increasing rapidly*, and the funds available are expected to be depleted rapidly, and the fund has been paying more than it takes in recently. If this trend continues, social security will not be able to pay recipients 100% of their benefit as early as 2034 unless something changes. What does that mean for Americans who have been paying into social security over the course of their careers, but won’t hit retirement age until after these social security funding concerns arise. Here’s what finance expert Darcy Bergen thinks will happen.
Darcy Bergen knows that most Americans aren’t relying on social security – in fact, only 43%* Americans have confidence that social security will be around for the long haul. If these funding concerns come to fruition in 2034, it’s expected that people eligible to collect social security will receive about 75% of the benefits for which they were eligible.
There will be a clear funding gap in the future, according to Darcy Bergen. Lawmakers will have to make decisions about whether they’re going to reduce benefits, or change the way that money is raised for social security. According to Darcy Bergen, people who will retire after 2034 need to think carefully about how they’re investing their money now. It’s key to think of social security as an unreliable bonus – not a reliable form of income for retirement.
Research shows that 61% of people** who are currently paying into social security would be happy to contribute more now in order to have that income available for the future. Since this isn’t possible, Darcy Bergen recommends investing that money into your own retirement account, either through matching contributions with your employer or through your own 401(k) plan.
Darcy Bergen recommends working hard now to make the investments that will pay off as you retire. This may mean meeting with a financial advisor to learn what retirement will realistically look like for you, and making changes now that will help you relax more comfortably in your golden years. Darcy Bergen says that many people choose to ignore retirement funds when they’re young, feeling that it’s too stressful to think about how they’ll manage money when they’re older. According to Darcy Bergen, this is one of the biggest financial mistakes that you can make.
Working to ensure your successful retirement now will go a long way when you reach retirement age, regardless of what happens with social security in the future. Remember, Darcy Bergen recommends enjoying whatever social security benefits you end up receiving – but not relying on these benefits as your sole form of retirement income.