We have all heard the warning for years now about the Social Security retirement system. Some experts release warnings that are dire predictions of doom while others tell us that the issue can be repaired. So do you need to be stressed and if so what can you do about it?
The Social Security Administration supervises a number of federally funded programs, including the Social Security retirement program. Retirement benefits are intended to be the savings on which employees can count when they reach their golden years. Never intended to be a gold mine, Social Security benefits when provided enough regular monthly income for a couple to survive. Increases in Social Security advantages have actually not kept up with the rising expense of living. As of 2012, the typical month-to-month Social Security benefit check was $1230 which may still offer adequate cash to survive on, but hardly. Regardless of whose predictions you choose to listen to, there appears to be no doubt that the Social Security advantages program is in trouble.
The essence of the problem is basic– as the baby boomer generation prepares to retire, there are merely insufficient individuals working to support their retirement. Not that there aren’t other issues with the system, however this is a huge one. Although you pay into the Social Security system throughout your lifetime, that money funds existing retirees. In theory, when it is your rely on retire individuals who are operating at that time will fund your retirement; however, if there are not adequate people working, benefits will reduce or vanish entirely. While political leaders are working behind the scenes to come up with a solution, you must be dealing with your own individual solution.
Don’t count on Social Security to money your retirement. If it exists when the time comes, then consider it money. In the meantime, produce an estate plan and monetary portfolio that focuses on retirement income. Take a seat with your monetary advisor and your estate planning attorney and ensure that you will be economically protected when you reach your golden years without Social Security benefits. If Social Security comes through, take the household on a trip around the globe!