The great debate on how to fix and improve Social Security continues as a possible fix for Social
Security could be reducing the benefits for people who make more money is being considered. With
lower payments to these individuals, recipients who rely more on Social Security for a larger part of their
retirement income aren’t being impacted by cuts to the system as much. This is a possible way to
alleviate the financial burden of many recipients.
But what’s considered a high-income individual is broader than you may think and if this measure were
taken, you could be impacted if you are in the top 50% of wage earners.
In 2020 you would’ve fallen into this category if you made $68,400 or more. If you are among the top
25% of Americans who in 2020 made $123,580, you may be able to easily save more into your
Maxing out your 401(k) and contributing excess money to a nonretirement account could help you make
up for a lower Social Security payment.
For those who don’t make this much and are already saving as much as you can, company match
benefits could be that can increase your annual contributions without using more of your own money.