🛡️ How will the projected Social Security cut affect your retirement?

According to a recent report from Money Com, the primary Social Security trust fund is forecast to deplete in 2032. Without congressional action, average monthly benefits will drop from $2,084 to $1,626. That is a painful 22% cut for retirees.

This calculator helps you determine how much you need to invest today to replace that lost income. You can see exactly what it takes to protect your retirement lifestyle.

While the average expected hit is around $450/month, your actual benefit reduction depends on your current income and when you officially retire. Enter your specific retirement projections below. This allows you to see the exact monthly shortfall you need to cover before time runs out.

Money Com experts recommend building a blended income strategy using dividend stocks and ETFs. By investing consistently now, you can build a portfolio that generates enough passive income to offset the government cuts.

The math relies on a safe withdrawal rate to ensure you do not deplete this supplementary nest egg too quickly. We assume a standard target, but you can adjust your expected market returns based on your risk tolerance.

For further related reading, check out:

• Future Social Security Payments Will Barely Pass the Poverty Line Unless Congress Steps In