Prioritizing retirement savings is a wise decision in the post-pandemic world of job uncertainty, wage growth slump, elevated inflation and living costs alongside the high cost of borrowing.
What's more concerning is that the Social Security benefits could drop in 2033 as fewer employees are left to contribute (via payroll taxes) to the workforce's future retirement benefits. The situation is likely to impact millennials and Genz the most. As Baby Boomers continue to retire at a record pace, the Old-Age and Survivors Insurance (OASI) Trust Fund will deplete to a point within a decade where it can only cover 79% of scheduled retirement benefits, according to the Social Security and Medicare Boards of Trustees 2024 report.
