America’s Social Security program is popular but underfunded. Experts warn that the social safety net millions rely on is fraying. Personal finance author Tony Robbins is calling on people to start weaving their own safety net.
“Time to get your head out of the sand and do some easy number crunching to find out where you are and where you need to be,” Robbins said. “Remember this: Anticipation is the ultimate power. Losers react; leaders anticipate.”
According to the AARP, 74% of Americans believe Social Security will not provide enough to live on during retirement.
Two-thirds also consider the monthly benefits too low. If you share these concerns, here’s what you can do to secure your financial future:
Craft your own financial security plan. Since Social Security payments are likely insufficient, creating your own nest egg is an obvious solution.
Robbins recommends saving at least 20 times your annual living expenses to fund a comfortable retirement. According to the Northwestern Mutual 2024 Planning & Progress Study, on average, U.S. adults estimate that $1.46 million is needed to retire comfortably. This is 15% higher than in 2023, even though Americans’ average retirement savings dropped to $88,400 in 2024, down from $89,300 in 2023.
Most Americans know they need to be saving and know how much, but are failing to actually save.
Preparing for retirement shortfall
A simple savings and investment plan can help you stay ahead.
If you’re in your mid-30s with an average household income of $80,610, you can reach $1.46 million within 31 years by saving 10% of that income ($8,000 a year or $666 a month) and investing it in a low-cost index fund with a historical 10% annual return. Retiring abroad is another option. Given rising costs, lackluster Social Security benefits, and lack of savings, many Americans find it appealing to retire overseas.
As of 2024, 21% said they would like to retire abroad, up from 10% in 2011, according to Gallup. Over 760,000 retirees were collecting Social Security while living overseas. Moving to a country with a reasonable quality of life and lower costs, such as Japan, Panama, Portugal, or Greece, could be a solution for those struggling to meet retirement goals.
Despite its flaws, Americans broadly support Social Security and want the government to salvage it. A January 2025 poll found that two-thirds believe the government is underspending on the program, and 85% support it even if it means higher taxes for everyone.
87% said funding should be a top priority regardless of the nation’s fiscal situation. Given the program’s popularity, taxpayers should consider pushing Congress for funding reform. This article provides information only and should not be construed as advice.
It is provided without warranty of any kind.
Image Credits: Photo by Guto Macedo on Pexels
