As you prepare for retirement, you will learn a lot about the social security trust fund. How you can qualify for the largest amounts, what you need to do to receive it, and much more can be confusing to learn about. Keep reading to find out more about the social security trust fund, how gold can benefit your retirement, and whether you can live on the social security trust fund alone.
What is the Social Security Trust Fund?
According to the Center on Budget and Policy Priorities, the Social Security Trust Fund is part of Social Security’s financial operations. They are handled through two federal trust funds: the Old-Age and Survivors Insurance (OASI) trust fund and the Disability Insurance (DI) trust fund. Although legally distinct, they are often referred to collectively as “the Social Security trust fund.” All of Social Security’s payroll taxes and other earmarked income are deposited in the trust funds, and all of Social Security’s benefits and administrative expenses are paid from the trust funds.
Following the bipartisan Social Security financing deal in 1983, Social Security ran a surplus every year until 2021. Starting in 2021, Social Security’s total cost exceeded its total income. However, the trust funds’ reserves supplement the program’s income — from payroll taxes, income taxes on benefits paid to higher-income beneficiaries, and interest earned on the trust funds’ bonds — to enable Social Security to keep paying full benefits until 2035.
If Social Security’s trust funds run out of Treasury bonds to cash in, benefits would not stop — contrary to a common misunderstanding. At that point, if nothing else is done, Social Security could still pay 80 percent of promised benefits using its annual tax income. Of course, paying less than full benefits is not an acceptable way to run this vital program, and Congress will need to act to strengthen its long-term finances.
Can You Retire on Social Security Alone?
Whether you can retire on social security alone is up to you! Depending on the life you want to lead after retirement, you may want to consider other options for cash flow. Some examples to consider include:
- Do you want to travel frequently while retired?
- Where will you live once you retire?
- What is your lifestyle like? Do you enjoy luxuries, or do you enjoy the simple things?
- Do you or your partner have any health issues to consider?
- Do you have other investments to add to your income?
- Will you want to work a part-time job to supplement?
How to Protect Your Retirement
Gold will help you to protect your retirement funds against inflation, if your other investments tank, economic uncertainty, and much more. Don’t just take our word for it—Forbes explains that when the stock market gets rough, some investors seek out safe-haven investments like precious metals. While gold, silver, and palladium are subject to their own forms of volatility, many believe them to be superior long-term investment choices for retaining and growing value.
A precious metal IRA is a special form of self-directed individual retirement account. Self-directed IRAs allow you to invest in a broad variety of unconventional assets, including precious metals, real estate and even cryptocurrency. These are beyond the usual options available in a conventional IRA, though they have virtually identical traits outside of this, including the same contribution limits.
According to Kelli Click, president of the STRATA Trust Company—a self-directed IRA custodian that specializes in gold and other metals—precious metal IRAs are an avenue some people use as part of their retirement plan because gold, silver, and palladium have historically grown in value over the very long term.
Protecting Your Investment with Priority Gold
If you are ready to invest in gold to protect your savings and secure your future, we can help. Priority Gold is one of the most trusted precious metals dealers in the United States with a BBB A+ Rating, AAA Rating with Business Consumer Alliance, and 5 Stars Rating with TrustLink.
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