MERRILL, Wis. (WSAW) - The pandemic caused the fund that pays Social Security benefits to take a hit. The Social Security Administration website said the program is projected to become depleted by 2033. That’s a whole year earlier than estimated last year. That leaves 76% of the benefits payable at that time.
The Park City Credit Union investment experts have had concerns from customers about this issue.
“Some of our younger members are worried ‘will that be around’ so we need to help plan for not counting on social security,” said Kurt Powers, manager of investment at Park City Credit Union.
Another problem is that pensions are becoming non-existent.
“Companies do not want to put free money away for employees any longer,” said Powers.
He recommended that people invest in retirement outside of the 401(k). Investing outside of work is beneficial because there are more investment options, money is portable, and there is more flexibility for planning. Powers said the most important aspect is starting early. Even if there isn’t a lot to contribute, it’s better than waiting.
“It doesn’t matter what your financial status is, you can always prepare. Like Kurt said, you can do $25 a month, you can do $50 a month,” said Lisa Humphfrey, financial professional at Park City Credit Union.
One option for young adults is to start investing in a mutual fund.
“A mutual fund is owning 300 stocks within the mutual fund,” said Powers.
Powers calls it diversification. Instead of putting all the investments into one stock company a mutual fund spreads out the money among hundreds of companies and is less risky.
Other options worth considering are a Roth IRA and an IRA plan. Ryan Powers, a financial advisor at Park City Credit Union, recommended seeing a financial expert to find the best fit for you. He said it is especially important for young people to be prepared because of the eventual depletion of social security.
“That’s not a guarantee for us at this point. Even more so it’s important to start paying yourself for the future, right now,” said Powers.
Park City will be hosting a retirement planning seminar at CT’s Delly in Rhinelander at 5:30 pm on Wednesday, Sept. 15. For more information visit the Park City Credit Union website.
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