Suze Orman slams ‘fearmongering’ around Social Security. Here’s how to protect your retirement

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Suze Orman has a lot to say about Social Security.

For one, she encourages her podcast listeners to avoid relying on its payments to support them completely in retirement. On the flipside, she emphasizes that although its annual shortfall is projected to reach $100 billion this year, Social Security will not disappear outright.

In fact, she called this claim “fearmongering” in a blog post from 2021.

However, warnings of Social Security’s looming shortfalls have only increased since then.

The program’s benefit payments have exceeded its revenue each year since 2021. Although this year’s monthly payment adjustment is the smallest since 2021, the Social Security Administration (SSA) trustees project the trust’s funds will be depleted by 2035.

Regardless of how the government responds to Social Security’s issues, taking control of your finances is the best way to protect yourself from future risks to the program.

Remember that the longer you wait to claim your Social Security benefit, the better the benefit will be. This should be a crucial factor in determining your personal retirement plans.

In a LinkedIn post last year, Orman wrote, “Every month you wait will pay off. If waiting until 70 seems too daunting, why not reframe this as an annual choice? At 62, choose to wait. Then ask yourself at 63 if you want to wait until 64.”

It’s sound advice, but pushing out those payments is easier said than done if you don’t have a solid plan. Having a professional by your side can add confidence and clarity to your financial decisions.

With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.

Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.

All you have to do is fill out a brief questionnaire about your financial goals, and Vanguard’s advisers will help you set a tailored plan, and stick to it.

What can you do to make sure you’re reducing your reliance on Social Security? Orman suggests using income from other sources, like a 401(k) or IRA, while you wait out your Social Security benefits.

Beyond the question of which accounts to use for your retirement savings, you’ll also need to consider what to invest in, too.

Opting for a gold IRA gives you the opportunity to hedge against market volatility by allowing you to invest directly in physical precious metals rather than stocks and bonds.

One way to invest in a gold IRA is with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Investing in real estate is another way to diversify your portfolio, as its returns do not closely correlate to that of the stock market. You also don’t need the price of a downpayment to get started.

Backed by world-class investors like Jeff Bezos, Arrived makes it easy to fit rental properties into your investment portfolio, regardless of your salary. Their easy-to-use platform offers SEC-qualified investments such as rental homes and vacation rentals.

The flexible investment amounts and simplified process allow both accredited and non-accredited investors to take advantage of this inflation-hedging asset class without any of the work of becoming a landlord.

You can get started today by browsing a curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, choose the number of shares you want to buy and start investing.

Read more: Rich, young Americans are ditching stocks — here are the alternative assets they’re banking on instead

In December 2024, the Federal Reserve cut interest rates by a further 0.25%. Economists – including those of Goldman Sachs – believe they will continue to decrease rates throughout 2025, which could bring growth to the commercial real estate sector.

For years, direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.

First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions – including how much you would like to invest – to start browsing their full list of available properties.

However, owning a share of a project or property this way holds some risk — for instance, you could receive no returns and these assets are often illiquid. Speak to a professional if this investment is right for you, especially if you are retired or close to retirement.

The key to your future financial freedom is investing as soon as you can. Orman gave a telling example of this during a Wall Street Journal interview last year, explaining, “A $10,000 investment made at age 45 will be worth around $32,000 at age 65, assuming a 6% annualized return. Invest the same $10,000 at age 55 and it will be worth less than $18,000.”

The benefits of compound interest are obvious, but what’s not so obvious is finding room for investing in your budget. Acorns can help you find the dollars to invest by using your spare change.

When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio. This way, even your pennies can grow into a solid nest egg for retirement.

Plus, when you sign up now, you’ll get a $20 bonus investment.

Finally, an emergency fund can help you keep your budget intact when unexpected expenses arise, ensuring you don’t feel tempted to tap into Social Security funds earlier than you planned.

Orman is a big advocate for emergency funds — not only for the safety they provide in the event of an emergency but also for the stress reduction benefits.

In an August 2024 blog post, she wrote, “women who have managed to save up enough money to cover three months of living expenses were far less likely to be carrying around high levels of stress.”

If you’re looking for safe, high-return options, certificates of deposit (CDs) could be a great choice, or you might conisder opening a high-yield savings account that can help you grow your savings to grow over time.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.