The Social Security Trust funds are running out, which could be bad for people who are already getting benefits and people who will get benefits in the future.

Two types of money come in to pay for Social Security: payroll taxes paid by workers and money from the Old-Age and Survivors Insurance (OASI) program. Payroll taxes don’t cover all of the benefits the program gives out, so the OASI fund makes up the difference.

But this fund will run out at some point. The Social Security Administration says that the fund will run out of money by 2033, which is less than ten years from now. If you add in the Disability Insurance (DI) Trust Fund, which is also in charge of benefits, the deadline is pushed back to 2035.

The program has been in trouble before and needed help from Congress to keep going. But the deadline for the cuts is coming up and there doesn’t seem to be a way out.

People who depend on the program or plan to depend on it in the future will be upset by this. Without these funds, an alarming number of Americans could fall into poverty.

People who are planning to retire soon should not wait for lawmakers to solve the problem. Instead, they should start planning ahead of time so that they can retire with as little help from the government as possible.

What to do to prepare if you’re still working

The advantage is big and shouldn’t be taken lightly for people who still have jobs and don’t depend on a fixed income to live.

If you know you have a few years to get ready, you might want to change your budget and set aside more money for savings to make up the difference between what you thought you would have saved and what you actually have.

In order to help people reach this goal, the Internal Revenue Service (IRS) has made things called “catch up contributions,” which let people over 50 save more in their 401(k) or IRA. Putting money into strong portfolios and saving more will help you have a safe and happy retirement.

For those of you who are still working, this means that you can also look at your plans for retirement. So, you might have wanted to retire at age 62, but if your finances wouldn’t let you, you can change your mind and wait a little longer.

You can start getting Social Security benefits at age 62, but the amount isn’t nearly enough for most families to live on, especially when medical costs are taken into account, so it might be best to wait until at least Medicare benefits start to come in.

What to do if you’re already retired and rely on Social Security

Even though retired people don’t have as many choices, that doesn’t mean they can’t make things better. The gig economy is a great way for retired people who are still able to work to make extra money. That way, they might be able to save money in case they get cut. They would have ten years to save money if they began today.

Moving to a different part of the country where Social Security benefits go further is another option. It can be hard to leave friends and family behind, but people who live in areas with very high costs of living would be surprised at how different life is there.

People who are retired should think about their choices, make a budget, and take a good look at their money. This will help them figure out what steps they need to take to make sure that the cuts to their benefits don’t hurt them.

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