From Yahoo Finance: 2025-05-28 15:05:00

Many Americans rely heavily on Social Security in retirement, with 53% of non-retired Americans expecting to rely on it for necessary expenses. President Trump’s proposed tax cuts could impact Social Security’s future solvency, making it crucial to take control of your retirement finances now.

Financial experts recommend maxing out tax-advantaged retirement accounts, but it’s important to prioritize debt repayment and emergency savings. Only 15% of private sector workers have access to defined benefit plans, making it crucial to explore other retirement savings options like IRAs.

President Trump’s Tax Cuts and Jobs Act provided tax breaks that are set to expire in 2025, potentially leading to higher tax rates. Converting a tax-deferred retirement account to a Roth IRA before rates rise can reduce future tax burdens. Consult a financial advisor to determine the best strategy for your situation.

Retired Americans can expect to spend around $165,000 on healthcare expenses in retirement, significantly more than the $75,000 they anticipate. To prepare for these costs, consider enrolling in a High Deductible Health Plan and opening a Health Savings Account for tax benefits and emergency healthcare funds.

Read more: Do you rely on your monthly Social Security check to get by?