Very concerning stuff in this one:
Study: 40% of Older Adults May Be Setting Themselves Up for a Difficult Retirement
In theory, the most prepared retirees will have three sources of income (often referred to as the "three-legged stool"): income from a pension, income from a retirement fund, and Social Security benefits.
However, many recent and future retirees don't have all three legs on their stools. Pensions are not nearly as common as they once were, leaving a lot of retirees to depend just on their savings and Social Security checks.
But new research from the National Institute on Retirement Security found that around 40% of retirees don't have any savings to live on, nor do they have access to a pension, meaning Social Security is their only source of income.
And despite the far-fetched promises of Washington bureaucrats, it's common knowledge that the entire Social Security program is in dire straits.
It's not easy to balance on a one-legged stool, and those who are trying to survive on Social Security benefits alone in retirement have their work cut out for them. Your monthly checks are only intended to replace around 40% of your pre-retirement income, which can make it difficult to pay the bills if your benefits are the only money coming in.
Also, there's a chance that your benefits could be reduced in the relatively near future.
Right now, the Social Security Administration is running a deficit as it pays out more in benefits than it's receiving from taxes. The organization is currently tapping its trust funds to bridge the gap, but those funds are expected to run out of money by 2035.
At that point, the amount coming in from payroll taxes will only be enough to cover about 75% of estimated future benefits. In other words, unless the government finds a fix in the coming years*, retirees could see their benefits reduced.
(https://www.fool.com/retirement/2020/01/20/study-40-of-older-adults-may-be-setting-themselves.aspx)
* which it won't (prediction by yours truly)
It's not good news, folks. For many, it's too late to start saving. For those under 40, WAKE UP! Have fun with your life today, but don't forget about years 60-80!! "Bank it while you got it"
Grace & Peace & Love to you all -
Matt