The Myth Of Social Security As Your Primary Retirement Income Make Social Security the Bonus, Not the Basis of your retirement planning.
When I ask people if they have a guaranteed source of retirement they almost always answer, "Yes, Social Security.
" Is it smart to count on the government as your primary source of retirement income? Is it possible that the National trust fund could be severely depleted? Consider the Facts:
Every year, they issue a report on the status of the trust fund.
The 2010 trustees report projects that the Social Security Trust funds will be exhausted in 2037.
Four years earlier than expected in 2006.
Without any changes, the system will start to take major cuts and setbacks starting in 2017.
That is only 6 years from now-not too far down the road.
Every year, the trustees urge the public and the Federal Government to address the shortfalls "in a timely way to allow for gradual changes and advance notice to workers.
" Even the administrators themselves tell us flat out that you can't count on your monthly Social Security check to cover all your expenses.
They acknowledge this because they understand that Americans are living longer with the help of modern medicine and technology.
Bottom line is that regardless of the future of Social Security, it was-and never will be- a way to fund the retirement of your dreams.
As the earliest Boomers approach retirement, the average monthly retirement benefit is approximately $1,000- or only about $12,000 a year.
Retirees should view Social Security as a bonus in retirement not the basis of their retirement.
If you don't take ownership of your retirement, believe me, the government will attempt to.
But the government is not in a very efficient steward of funds.
You can be far more efficient in managing your retirement money that the government is.
For those Boomers who don't have the financial discipline to create their own retirement fund, it will probably be in existence but I predict it will end up being disbursed similar to a welfare benefit system.
If you see it with those set of glasses, them anything that you do receive will be extra frosting on the cake, and if you don't receive what you're hopping than you wont be disappointed because you planned it out.
When I ask people if they have a guaranteed source of retirement they almost always answer, "Yes, Social Security.
" Is it smart to count on the government as your primary source of retirement income? Is it possible that the National trust fund could be severely depleted? Consider the Facts:
- When Social Security was first enacted during the Great Depression, there were sixty workers to every one recipient of benefits.
Within just a few years, that ratio was reduced to fifteen to one. - In the 1970s, it declined to six to one.
By the 1990s, there were nearly three workers in America for every one recipient of benefits. - Now, as the oldest Baby Boomers prepare to begin retiring, it is estimated that before long there will be only two workers in America pulling the wagon for every rider.
- To keep it solvent, the Government has already pushed back the age at which younger persons will be allowed to collect full benefits.
- With the upcoming workforce decreasing and retirees living much longer than when Social Security was initiated, there will likely be even more Social Security reform.
Every year, they issue a report on the status of the trust fund.
The 2010 trustees report projects that the Social Security Trust funds will be exhausted in 2037.
Four years earlier than expected in 2006.
Without any changes, the system will start to take major cuts and setbacks starting in 2017.
That is only 6 years from now-not too far down the road.
Every year, the trustees urge the public and the Federal Government to address the shortfalls "in a timely way to allow for gradual changes and advance notice to workers.
" Even the administrators themselves tell us flat out that you can't count on your monthly Social Security check to cover all your expenses.
They acknowledge this because they understand that Americans are living longer with the help of modern medicine and technology.
Bottom line is that regardless of the future of Social Security, it was-and never will be- a way to fund the retirement of your dreams.
As the earliest Boomers approach retirement, the average monthly retirement benefit is approximately $1,000- or only about $12,000 a year.
Retirees should view Social Security as a bonus in retirement not the basis of their retirement.
If you don't take ownership of your retirement, believe me, the government will attempt to.
But the government is not in a very efficient steward of funds.
You can be far more efficient in managing your retirement money that the government is.
For those Boomers who don't have the financial discipline to create their own retirement fund, it will probably be in existence but I predict it will end up being disbursed similar to a welfare benefit system.
If you see it with those set of glasses, them anything that you do receive will be extra frosting on the cake, and if you don't receive what you're hopping than you wont be disappointed because you planned it out.
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