GREEN BAY, WI (WTAQ-WLUK) — Social Security could have to cut benefits by 2034, according to a recent federal audit.
That could leave younger Americans without the same benefits enjoyed by the older generation.
Adam Longlais is the vice president investment officer for Nicolet Bank.
“It gets into the politics of who votes. And traditionally, older Americans, a larger group have voted,” says Longlais. “And so they’ve had a larger sized influence on the politics.”
Working Americans in their 20s, 30s and even 40s could be impacted by the moving deadline.
The COVID-19 pandemic does anything but help.
“It’s a moving target. Just in the last 12 months it’s changed. COVID has moved the date forward a year,” says Longlais. “And that’s because a lot of people who were unemployed in a short period of time and so to the event that you have events like that, it absolutely could come even sooner.”
The audit also shows that at the end of 2020, 65 million Americans were receiving social security.
And while President Joe Biden campaigned on expanding social security, no action has yet to be taken.
Longlais encourages people to keep a 401k and some type of IRA account.
“I would do both. So you want to max out that 401(k), and you also want to do the IRA,” says Longlais. “What’s nice sometimes is you can do a Roth IRA, and so you don’t necessarily get the tax deduction, but it will help when you retire later, there’s some benefits.”
Fidelity and Charles Schwab, Longlais says, are two places where beginner investors can open up retirement accounts in as little as minutes.
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