We have all heard the warning for years now about the Social Security retirement system. Some experts provide cautions that are alarming forecasts of doom while others inform us that the issue can be fixed. So do you need to be fretted and if so what can you do about it?
The Social Security Administration oversees a number of federally funded programs, consisting of the Social Security retirement program. Retirement benefits are planned to be the nest egg on which employees can count when they reach their golden years. Never planned to be a gold mine, Social Security benefits as soon as offered enough month-to-month earnings for a couple to make it through. Increases in Social Security advantages have actually not kept up with the increasing expense of living. Since 2012, the average monthly Social Security benefit check was $1230 which may still offer adequate cash to survive on, but barely. Despite whose predictions you select to listen to, there appears to be no doubt that the Social Security benefits program remains in trouble.
The core of the problem is basic– as the infant boomer generation gets prepared to retire, there are simply not sufficient people working to support their retirement. Not that there aren’t other problems with the system, however this is a huge one. Although you pay into the Social Security system throughout your life time, that money funds present senior citizens. In theory, when it is your turn to retire the individuals who are operating at that time will money your retirement; however, if there are insufficient people working, advantages will decrease or disappear entirely. While politicians are working behind the scenes to come up with a solution, you should be working on your own private solution.
Don’t depend on Social Security to money your retirement. If it’s there when the time comes, then consider it money. In the meantime, produce an estate plan and financial portfolio that focuses on retirement income. Sit down with your financial advisor and your estate planning lawyer and ensure that you will be financially safe and secure when you reach your golden years without Social Security benefits. If Social Security comes through, take the household on a trip around the globe!