Social Security's Future: Why You Need Personal Savings

0:00It's March 25th. This is Durham News Today, powered by AI. Recent federal estimates show Social Security's trust funds could run dry by 2034, one year earlier than last year's projection. This has sparked real worry among older Americans, with new research revealing one-third are thinking about claiming benefits sooner than planned. Confidence in the program's future has dropped 7 percentage points since 2020, now sitting at just 36 percent. Other folks tend to feel more secure about it than younger people, but nearly two-thirds of retirees say they depend heavily on those checks. Many non-retirees, especially those 18-49, don't realize how much they'll lean on Social Security later. That's pushing broader talks on retirement planning, stressing the need for personal savings beyond government benefits. Experts like Jean Chatsky urged starting with workplace 401k plans, aiming for 10 percent of income if you begin before your mid-30s, or 15 percent later.

1:02For individual retirement accounts, pick traditional for upfront tax breaks, or Roth for tax-free withdrawals down the road, with contribution limits. Up to $7,500 next year, or $8,600 for those 50 and older. Building these habits early cuts the odds of outliving your money to about 20 percent. So living on less than you earn sets you up to save more, over time.