We have all heard the caution for several years now about the Social Security retirement system. Some analysts issue warnings that are alarming predictions of doom while others inform us that the issue can be repaired. Do you need to be fretted and if so what can you do about it?
The Social Security Administration oversees a number of federally financed programs, consisting of the Social Security retirement program. Retirement benefits are planned to be the savings on which workers can count when they reach their golden years. Never intended to be a gold mine, Social Security benefits when provided enough regular monthly earnings for a couple to survive. Increases in Social Security benefits have actually not kept up with the increasing cost of living. Since 2012, the typical regular monthly Social Security advantage check was $1230 which might still provide enough loan to reside on, however hardly. Regardless of whose forecasts you pick to listen to, there seems to be no doubt that the Social Security benefits program remains in trouble.
The essence of the problem is easy– as the baby boomer generation prepares yourself to retire, there are simply insufficient people working to support their retirement. Not that there aren’t other issues with the system, however this is a huge one. You pay into the Social Security system throughout your life time, that cash funds existing senior citizens. In theory, when it is your rely on retire individuals who are working at that time will fund your retirement; nevertheless, if there are insufficient people working, benefits will reduce or vanish entirely. While political leaders are working behind the scenes to come up with an option, you need to be working on your own individual solution.
Don’t count on Social Security to fund your retirement. If it’s there when the time comes, then consider it money. In the meantime, produce an estate plan and monetary portfolio that focuses on retirement income. Sit down with your monetary advisor and your estate planning lawyer and make sure that you will be financially protected when you reach your golden years without Social Security benefits. If Social Security comes through, take the family on a journey worldwide!