It’s Time To Seriously Consider How Secure Your Social Security Will Make You Feel
Okay, I’m going to state right off the bat, I am not trying to cause fear or panic. I’m only planting the seed for the realization that it’s never too early to create a sound retirement income plan and strategy. The main point is that counting on Social Security is clearly not going to be as secure for Gen X, and Millennial retirees as it was when first established.
A Little Background
When Social Security was established in 1935, there were 16 people paying into the system for every person collecting benefits. Today there are less than 3 workers paying in for each person collecting. When 2032 rolls around, this number is expected to drop to 2 people paying in per person collecting.
The fact is that in 2010 Social Security began paying out more than it collected through all sources and is projected to continue doing so for the next 75 years. The current statistics say Social Security is headed to insolvency by 2033. That’s just 11 years away.
Don’t Panic But Please Do Pay Attention
As I mentioned, there is no need to panic. Our government recognizes that there are too many people who derive the majority of their retirement income from Social Security to allow it to fail completely. But you can count on modifications being made such as reduced benefits, increased payroll taxes and a continual raise in the full retirement age.
Are You Convinced Yet
While you are gainfully employed, hail and hearty, sit down with a fiduciary financial planner and map out your retirement goals. Then create a plan and stick with it.
Taking responsible action as soon as possible to make your retirement as financially comfortable as possible can be an enjoyable process once you get started. Saving and watching your nest egg grow gives you the confidence and ability to meet expenses along the way. Knowing that you will be able to continue the lifestyle you love during retirement is ultimately satisfying.
With advances in medical technology and our growing knowledge about how to take care of our own health through diet and activity, people are living longer than ever. The biggest fear of many people who are getting closer to retirement is that they may run out of money before they take their final journey off this earth. As a financial planner, I am an advocate of starting to plan for retirement when you begin your working career.
1) Benefits are likely to be reduced in the very near future through a continued rise in the full retirement age.
2) Increased life expectancies are changing the dynamics of when to take benefits and the optimal time to retire.
3) While we cannot control what is happening, we can focus on our response regarding retirement savings and proper planning.
4) Maximization strategies are more important than ever before due to this new reality.
Let’s Get Started
Putting a financial plan in place does more than just make you feel that your retirement years will be more secure. A financial plan helps your family feel more secure too. Financial security is one of the most important things you can give your family and loved ones. And I love to help people gain this amazing sense of security. Give me a call and let’s get your plan in place as soon as possible.