The Money Section | What happens when Social Security funds run out?

͏Also, see the hidden cost of car breakdowns. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [The Charlotte Observer]( April 13, 2023 • Issue #28 [The Money Section] This week, we’re looking at the IRS’ long-awaited Strategic Operating Plan, the relationship between dangerous roads and higher auto insurance, and expert predictions on when Social Security funds will run dry. Will it run dry? [Funds]( Money; Getty Images Social Security funds are expected to run out of money in 2034, according to the latest report by the agency’s trustees. If Social Security were to become insolvent, the benefit programs would still exist, although benefits would be cut by 20% for it to remain operational. [Read more.]( ⏳ Medicare’s deadline. Medicare’s Board of Trustees reported last Friday that the program’s hospital-insurance benefits are now projected to run out of money in 2031. On the whole, Medicare is on sounder financial footing than indicated in last year’s trustee report, though [financial shortfalls still loom](. 🏦 $1 million to retire. Americans estimate they’ll need between $1.1 and $1.3 million to retire, and most are very pessimistic about reaching those figures, according to a new retirement survey from investment manager Schroders. The results add to the many data points showing how far behind workers feel [when it comes to saving for retirement](. What’s driving up the premiums? [Roads]( Money; Getty Images Auto insurance premiums are increasing due to expensive car repairs, medical inflation, and a rise in road fatalities since the end of pandemic lockdowns in mid-2020. Drivers accustomed to faster speeds on empty roads during the pandemic may be contributing to the increase in fatalities, [leading to higher insurance costs](. 🚗 The hidden cost of car breakdowns. The COVID-19 pandemic has caused cars to stay on the road longer, resulting in the need for more substantial repairs. As a result, more people are falling behind on their auto loans, and lenders are tightening their standards, making it harder for [drivers to finance older vehicles](. 🥵 Car troubles. As the financial pressures of owning a car continue to mount, including limited access to car loans, rising insurance rates, and elevated car prices, consumers and lenders alike are feeling the strain. With rejection rates for car loans at their highest since 2017 and average interest rates for new cars on the rise, more people are falling behind on car payments. [Read more.]( A huge IRS overhaul [Overhaul]( Getty Images The IRS has released its long-term plan on how it intends to spend $80 billion in funding provided by the 2022 Inflation Reduction Act, with a focus on improving taxpayer services, increasing enforcement, and reducing the deficit. Here are some of the biggest changes the IRS is eyeing [and how they could affect you.]( ✍️ Wealthy tax dodgers, beware. The Biden administration plans to increase tax audits on the wealthiest taxpayers by tenfold, using $80 billion in new funding for the IRS to target high-income earners and complex businesses with unpaid balances. [Here’s what you need to know.]( 👨 💻 Higher rates for NFTs. The IRS is seeking public input on its proposal to tax certain NFTs similar to tangible collectibles like artwork or precious metals, potentially resulting in higher taxes (28% on net profits earned) for NFT holders. As of now, the IRS classifies NFTs and cryptocurrency as [“property” for federal income tax purposes.]( Smart Money Move Let the Pros Handle Your Tax Debt [Debt] [Debt]If you're weighed down by back taxes exceeding $10k, Tax Relief Programs could help provide relief and guide you toward financial freedom. These programs may help reduce interest and penalties by negotiating with the IRS on your behalf, lowering your overall tax debt. They can also provide peace of mind, as specialists understand the intricacies of the tax system and can recommend personalized solutions. We’ve researched options with 100% money-back guarantees, A+ BBB ratings, and free consultations so you can take the first step with confidence. [View our Best Tax Relief Companies list today and take a step toward financial freedom.]( Stories we're reading this week - [Gen Z Is Overly Optimistic About How Long It Will Take to Pay Off Student Loans]( - [Over 150,000 People Have Been Let Go so Far this Year. Are Layoffs a Confession of Bad Management?]( - [Ithaca’s Crazy Plan to Be Our First All-Electric City]( - [These 5 States Have the Highest Property Taxes in America]( - [These Are the 10 Most Overpriced Housing Markets in the U.S. — 5 Are in Florida]( - [A Renter’s Guide to the Inflation Reduction Act]( - [Google Just Released a Secret Weapon to Help You Avoid Overpaying for Flights]( The Money Section is written in partnership with Money Research Collective This email was sent to {EMAIL} because you are signed up to receive marketing emails or newsletters from The Charlotte Observer. If you no longer wish to receive emails of this type, you may [unsubscribe]( or [update your email preferences](. We are unable to monitor replies to this email. Please [contact customer service]( if you have any questions or concerns. [Privacy Policy]( | [Terms of Service]( | [View in Browser]( Copyright © 2023 The Charlotte Observer. All Rights Reserved. 9140 Research Drive, Charlotte, NC 28262