Here’s what you should know about Social Security in 2021.
Social Security is primarily funded through payroll taxes. Social Security benefits retirees, the disabled, or families who lose a loved one. Starting in 2021 Social Security will dip into fiscal reserves because benefit payments will exceed payroll tax contributions.
While lawmakers plan to make changes to make up the shortfall, if you’re a millennial it is wise to make your own plan. A 2020 poll found only 42% of millennials expect Social Security to be a source of income in retirement.
When planning for your future here is a good rule of thumb. “Hoping for the best, prepared for the worst, and unsurprised by anything in between.” -Maya Angelou
Quarterly Commentary: 2021 First Quarter