Don't Expect Social Security To Be Enough To Retire On
Published Tuesday, December 17, 2013 at: 7:00 AM EST
If you’re in your 20s, 30s, or even 40s, here’s a warning: Don’t count on Social Security benefits to sustain you comfortably through retirement. In fact, you may be better off not relying on Social Security at all.
Consider the aging population. According to the latest data, the average age of Americans is currently 36.7, and that average is edging up 0.2 years each year. With the population growing older, and birth rates falling, the number of people receiving Social Security retirement benefits will continue to increase at a time that fewer young workers will be available to fund the system with payroll deductions.
Whatever steps are taken to address that imbalance, the reality is that future benefits could decrease—and Social Security never was intended to be anyone’s only source of retirement income. With increasing pressure on that system, saving on your own will be more important than ever. And the earlier you begin, the better off you’re likely to be.
If you have a 401(k) plan or another kind of retirement plan at work, that’s usually a good place to start, especially if your employer offers matching contributions. Contact your benefits department to get the ball rolling. You also might consider setting up a Roth IRA on your own. It’s relatively easy to establish such an account, and we can provide whatever assistance you might need.
© 2022 Advisor Products Inc. All Rights Reserved.
- 'Tis The Season To Receive RMDs
- How To Avoid Bad Surprises In Roth IRAs
- Will You Have To Lower Your Sights In Retirement?
- 6 Bad Money Habits For You To Avoid
- Avoid Squabbling Over Your Estate
- Here Are 4 Quick Tax Reasons To Invest In Munis
- Where Can You Invest For Safety?
- A Common Error In Powers Of Attorney
- Want to Know How To Bid At An Auction? Here Are 10 Tips
- Tax Cost Of Being Your Own Landlord
- Should You Move To A Different State?
- Generation X Members Have Retirement Work Cut Out For Them
- Saving For Retirement At All Ages
- 3.8% Surtax Hits Passive Investors
- Computers For Grandparents: 10 Tips