Social Security has not been adequately funded for years, and there is no plan to fix it. This presents a difficult situation for the next generation of retirees – how can they be prepared financially when they can’t rely on social security?
How To Get Financially Prepared For Retirement From The Perspective Of Personal Finance Experts
We reached out and asked some top personal finance experts how they have planned for their retirements. They have shared some genius ways you could also avoid the looming threat of diminishing Social Security, and protect your own financial future.
Lower Your Mortgage Payment
The biggest monthly expense cutting into retirement savings is typically a mortgage payment. Some options to decrease your mortgage and increase your retirement fund are downsizing, renting out part of your home, or refinancing.
Invest the Surplus
It doesn’t matter if someone wants to retire at 62, 65 or any age, one of the first steps toward saving for retirement is to increase the household’s monthly surplus of income. Then, use the surplus to pay down debt to reduce high-interest payments, pad an emergency fund to take care of the unexpected, and finally, invest the rest.
Build Multiple Passive Income Streams
Even in its heyday, Social Security was only intended as a minor supplement to your other retirement income. It’s up to you to create diverse income streams for yourself in retirement.