Will Social Security Still Be There When I Retire?

social security

Social Security is the ultimate messiah that takes care of your financial needs when you get old or develop a disability. In America, the official name of Social Security is Old Age, Survivors, and Disability Insurance (OASDI). If you are new to this subject, bear in mind that Social Security is not a government funded retirement plan. Current workers pay a tax called the Federal Insurance Contributions Act (FICA) which is used in funding the Social Security payments to current retirees.

3 Social Security myths that you need to be aware of.

1. You should start taking Social Security when you turn 65

This is a myth that if taken seriously can severely impact your Social Security payments. The correct age to begin taking Social Security is between your 66th and 6th birthday. It is recommended to take it later when your turn 72 as it will difficult to work and earn money at that age. By opting to take Social Security later, it grows each year by 8 percent.

2. There are no taxes on your Social Security benefits

Whether you file for Social Security as a married couple or an individual, you will have to pay income taxes on it. Social Security income is taxable for individuals having a total income more than $25,000 and married couples having a combined income of more than $32,000.  So, do not be under a false assumption that your Social Security income won’t be taxed by the government.

3. Young people don’t need to worry about Social Security

social security

This is a total myth as young people need to know everything about Social Security and how they can leverage its benefits when they grow older. You are on the right track if questions like “Will social security still be there when I retire?” come to your mind at an early age. Even if you are in your 40’s or 50’s, you should hire a finance expert or read blogs like this one to educate yourself on Social Security.

Will Social Security still be there when you retire?

There are no legitimate studies to prove that Social Security is not going to be there when you retire. I have heard many people say that Social Security is going to go bankrupt by the year 2034 and Americans will have to rely solely on their retirement savings when they get old. But these people don’t have enough data to prove the legitimacy behind their statements.

So, as a clear headed and rational person, I will say that Social Security will definitely be still there when you retire. Maybe the terms and conditions will change. The American government will definitely take care of retirees and disabled people in one way or another. According to the Social Securities website, 67 million Americans will see a 2.8 percent increase in their Social Security and Supplemental Security Income (SSI) benefits in 2019. They update the citizens every year by announcing the annual cost-of-living adjustment (COLA). And it has been seen that there has been a steady increase in the benefits received by the retirees each year. So, Social Security is not going anywhere.

How to Stop Relying on Data & Save More Money

Data — when it works, it’s one of the biggest perks of owning a smartphone. That LTE symbol in the top corner of your screen means you can scroll and stream your way through the Internet.

It also means you may be paying top dollar for the privilege. Without an unlimited plan, it’s easy to go over your data and rack up hundreds of dollars in penalties.

If you want to avoid another month paying overage charges, try out these simple tips. They’ll help you change the way you use data, so you don’t have to pay an arm and a leg to browse.

Save money

Match Your Plan to Your Usage

It’s easy to say you’ll stick with a restrictive data limit to save money, but it’s an entirely different thing to actually do it.

Setting an ultra-low limit is like setting yourself up for failure. If the average person uses a little more 30 GB a month of both wireless and cellular data, something like 200 MB may not be a realistic goal.

While 200 MB may be too restrictive, 2 GB may not be. It’s all about finding that data sweet spot that’s affordable without being impractical.

Tap open your settings and look under Data Usage to see how much you’ve used in past months. Use this figure to choose a new plan with a limit that’s restrictive without being impossible.

Change Your Carrier

The biggest names in the data game are like brand name sneakers or purses. The name of the brand is what makes it more expensive. AT&T, Sprint, T-Mobile, and Verizon are some of the most common carriers in the US, yet they often charge the most for their plans.

By switching to a smaller and prepaid competitor, you could end up with more data for less money. According to cell phone expert Christine Gallup, the switch could cut your monthly bill in half.

Change Your Data Habits

If you don’t have an unlimited plan, there are some things you should never do on data. Falling down a click hole on YouTube or listening to your Spotify playlists are prime examples.

Apps that stream video and audio are the worst culprits for data overages, but they aren’t the only reasons why you go over your limits. There’s a long list of apps that use more data than you realize.

Once you identify the data guzzlers on your phone, here are some tips to help you work around these apps:

  • Wait until you’re on Wi-Fi to check your notifications
  • Download playlists, podcasts, and videos when you’re on Wi-Fi
  • Turn off automatic downloads and set it so your phone only updates apps when on Wi-Fi

Have a Contingency Plan

Although you have the best intentions to stay under your limit, you may still go over it.

Things happen. If you get lost, you’ll have to rely on Google Maps to find your way home. If you forget you didn’t actually download that episode of In The Dark, you’ll stream it during your walk.

If your higher-than-normal bill arrive as at the same time as an unexpected expense, you may not have the savings to cover everything.

If you don’t have extra savings set aside for emergencies, an online lender can help you pay off data overage charges. They offer short term loans online that are ideal for last-minute emergencies when you’re low on funds.

Online lenders are faster alternatives to traditional lenders because their digital platform operates 24/7. To find out how their online platform helps you, you can learn more about online lenders and their installment loans before you apply.

When you’re regularly using too much data, the obvious solution is to upgrade to an unlimited plan. But as data gets more and more expensive, that’s not always right for your budget. Luckily, there are cheaper ways to control your bill. Change the way you use data to see how much money you can save before you lock into a more expensive plan.