Starting March 2, 2024, millionaires will cease contributing to Social Security, leaving a funding gap. This may lead to benefit cuts by 2034. Democrats propose raising payroll taxes on the wealthy to address this, while some wealthy individuals advocate for taxing investment income like earned income. These proposals aim to maintain Social Security's financial stability and potentially increase benefits.
Despite educational advancements, women encounter pay disparities that hinder wealth accumulation and retirement savings. Vivian Tu's mentorship instilled a wealth mindset, and by investing her earnings and seeking higher compensation, she became a self-made millionaire at 27. Financial planners suggest consistent saving and investing, starting with 401(k) contributions and considering increasing stock allocations. These strategies combat challenges like caregiving responsibilities that potentially diminish earning capacity and retirement savings.
Women face financial challenges in retirement due to lower incomes and longer lifespans. Only 50% of women have personal retirement savings. To address this, women should increase their income by negotiating higher salaries, leveraging pay transparency laws, and seeking opportunities for advancement. They should also reduce expenses by conducting personal spending audits and cutting non-essential items. Utilizing workplace benefits, such as 401(k) matches, and establishing individual retirement accounts are essential for long-term financial security.
