A new year is here, and every new year brings change. In the financial world, every year we have tax law changes, interest rate changes, legislation changes, and changes in the financial and economic world. This year, however, not only will you have to adapt for these normal changes, but you will need to adapt for more changes than ever.
2021 is shaping up to be one of the biggest years ever when it comes to changes. With a new presidential administration coming in, a reshaped Congress, and additional stimulus packages coming to help the economy from the pandemic, we are going to see massive amounts of change in the financial and retirement planning landscape for this year alone. There are also major changes coming soon to the Social Security system, the healthcare system and the tax system.
In the past, Social Security had more money coming into the system than being paid out through benefits; that is no longer the case. For the last several years, the money coming in through the payroll tax has not been enough to pay full benefits. According to many sources, starting this year, Social Security will begin to draw down trust fund reserves to help pay for benefits. Thus, major changes will have to be made soon to save the system.
The next system to see major changes soon will be the tax system. The new presidential administration has promised to repeal the current tax system. In addition, increased taxes most certainly have to come into play to pay for all the stimulus packages from the pandemic.
So, what potential changes are coming to Social Security, the tax system and other financial areas? To obtain this information and get details about the differences between the retirement world of yesterday and today, attend a local Prepare Institute class or webinar.
Content is for educational and informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.