Do you rely on your monthly Social Security check to get by? MoneywiseAugust 31, 2025 at 3:05 AM Donald Trump We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
- - Do you rely on your monthly Social Security check to get by?
MoneywiseAugust 31, 2025 at 3:05 AM
Donald Trump
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Some or all links contained within this article are paid links.
Many Americans are heavily reliant, and in some cases, solely reliant, on their Social Security benefits to get by in retirement.
More than half of non-retired Americans (53%) expect to rely on their benefit to "pay their necessary expenses once they retire," according to a recent survey from Bankrate. This includes 28% of Americans who expect to be "very reliant." Of those already retired, 77% say they rely on Social Security for necessary expenses. Additionally, over 73% of Americans are worried they won't receive Social Security benefits in retirement.
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President Trump has promised to protect Social Security, but has also floated the idea of cutting taxes on Social Security benefits. This means baby boomers could get a bump in the short term, but experts predict this could speed up their insolvency.
So, no matter what happens (or doesn't happen), it may be a good time to take control of the reins for your retirement.
Here are three money moves you can consider that will possibly provide more financial stability in retirement and reduce your reliance on Social Security.
1. Max out your retirement savings
Some financial experts, like the founder of Financial Samurai, Sam Dogen, say you should aim to max out your tax-advantaged retirement vehicles. "Hopefully, it's something that becomes automatic, and you're not going to touch it until you're 59½," he said to CNBC. This will help you set yourself up for a comfortable retirement.
However, as Dave Ramsey's Ramsey Solutions points out, you should avoid doing this if you're still getting out of debt, don't have money saved for emergencies or are saving up for other financial goals.
Only 15% of private sector workers had access to a defined benefit retirement plan as of 2024, according to the U.S. Bureau of Labor Statistics. 67% have access to a defined contribution plan, such as a 401(k). For those who don't have access to either, there are other options available to help you save.
For example, an individual retirement account (IRA) is a tax-advantaged savings account that can help you save for retirement. With a traditional IRA, contributions are tax-deductible; you pay taxes upon withdrawal – ideally when you're in a lower tax bracket. With a Roth IRA, you pay the taxes upfront, but investment growth and withdrawals are tax-free once you reach age 59½. For 2025, the contribution limit is capped at $7,000 (or, if you're 50+, at $8,000), and you have until Tax Day in April to top it up.
Opening in a gold IRA with the help of Thor Metals is a great way to invest in gold that also provides significant tax advantages.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
Read more: Do you own rental properties in the US? These 6 hacks can help you boost your income and lower your tax burden
2. Capitalize on lower taxes — while you still can
In 2017, the Trump Administration passed the Tax Cuts and Jobs Act (TCJA). While this law is complex, it essentially provides for a number of tax breaks and deductions, many of which are scheduled to sunset in 2025. However, President Trump has said he plans to extend these tax cuts.
In the meantime, it may make sense for you to convert a tax-deferred retirement account into a Roth IRA if you expect the tax rate on the converted amount to be higher in the future.
"One reason to consider a Roth conversion this year or next: Without further action from Congress, tax rates are set to rise with the sunsetting of the 2017 Tax Cuts and Jobs Act at the end of 2025," according to Fidelity.
"Although the new administration and many Congressional Republicans support an extension of the current lower tax rates, record debt and deficits could complicate a full extension."
"In the meantime, a Roth conversion at current lower rates could reduce taxes on the conversion, and allow for qualified distributions in retirement that are tax-free."
This should be done over time so you don't end up getting bumped into a higher tax bracket. Whether this strategy is right for you depends on your financial situation, so it's worth talking to a financial advisor about your options for capitalizing on lower taxes.
To get the advice you need on converting your investments, consider RothIRA.org. They provide personalized, expert advice to anyone with a portfolio of $100,000 or more.
Plus, it's a simple and straightforward process: simply enter your information, and you will be automatically matched with 2 or 3 advisors who best suit your needs. From there, you can schedule screening calls for free with no obligation to hire, and find the right fit for you.
3. Contribute to an HSA
Even with Medicare, retired Americans can expect to spend a chunk of money on healthcare throughout their golden years. Medicare doesn't cover premiums or deductibles and other out-of-pocket costs, nor does it cover long-term care.
For example, a healthy 65-year-old man who retired in 2024 is expected to spend around $281,000 on healthcare throughout retirement, while a healthy 65-year-old woman retiring the same year is projected to pay about $320,000, according to the Millman Index.
If you're relying on Social Security to get by, unexpected medical costs could leave you stretched thin. One way to save for these additional costs in retirement is to enroll in an eligible High Deductible Health Plan (HDHP) and open a Health Savings Account (HSA).
An HSA has three significant tax benefits: contributions are tax-deductible, the money can be spent tax-free for qualifying healthcare expenses, and any investment growth in your account is tax-free. You cannot contribute to your HSA once you enroll in Medicare at age 65, so you may want to max out contributions to your HSA until then.
"While your HSA can't pay your premiums, it exists as an emergency fund for health care, and maxing it out can leave you better prepared for large out-of-pocket medical bills," says Experian author Emily Starbuck Gerson.
"There is a risk of saving more than you need, and later wanting that money for other purposes. You can't withdraw that money penalty-free until after age 65, and even then, you'll still owe taxes on non-qualified expenses."
Many people combine the benefits of an HSA with a traditional health insurance policy to manage their health care expenses. But searching through numerous websites to find the [most affordable health insurance] can be overwhelming.
With U65 Health Insurance, however, you can quickly compare rates from various providers and get the cheapest quote in less than five minutes.
Finding an affordable health insurance policy through U65 Health Insurance is easy, fast and free. They cover any American under the age of 65, including those who might have pre-existing health conditions.
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