Social Security is an important retirement income source. Unfortunately, many Americans may end up with less money from this benefits program than they anticipated. If you’re one of them, this can lead to serious financial problems in your later years.
Around half of all future retirees face this risk, based on new data from the Allspring Global Investments Survey. Here’s why.
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A look at current seniors shows why future retirees are at risk
Unfortunately, a survey of current retirees revealed one big reason far too many people could end up with lower-than-expected Social Security benefits. Around half of the survey respondents who’ve already left the workforce indicated they’d been forced to do so earlier than anticipated as a result of two factors beyond their control: Health issues, and decisions made by their employer. Sadly, tomorrow’s seniors could end up facing the same fate.
See, it’s not uncommon for health problems to develop relatively early on and make continuing to earn a living impossible. Older adults may also face difficulty finding a new job if their employer decides to let them go. And seniors who cannot work because of physical issues or a lack of opportunities are often forced to claim Social Security benefits sooner than they expected — especially considering leaving work ahead of schedule means they may not have amassed a large enough nest egg, since they’re missing out on prime savings years when catch-up contributions would otherwise have been available.
