We have all heard the warning for several years now about the Social Security retirement system. Some experts release cautions that are alarming forecasts of doom while others inform us that the problem can be repaired. Do you need to be worried and if so what can you do about it?
The Social Security Administration manages a variety of federally funded programs, consisting of the Social Security retirement program. Retirement advantages are planned 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 once provided enough regular monthly income for a couple to endure. Increases in Social Security benefits have not kept up with the increasing expense of living. Since 2012, the average month-to-month Social Security benefit check was $1230 which may still supply enough loan to live on, however hardly. Regardless of whose forecasts you pick to listen to, there appears to be no doubt that the Social Security benefits program is in trouble.
The essence of the issue is simple– as the baby boomer generation gets all set to retire, there are just insufficient individuals working to support their retirement. Not that there aren’t other problems with the system, but this is a huge one. Although you pay into the Social Security system throughout your lifetime, that money funds existing senior citizens. In theory, when it is your turn to retire the people who are operating at that time will money your retirement; nevertheless, if there are insufficient people working, benefits will decrease or disappear totally. While politicians are working behind the scenes to come up with an option, you must be dealing with your own specific solution.
Don’t count on Social Security to fund your retirement. If it exists when the time comes, then consider it additional money. For now, develop an estate plan and financial portfolio that focuses on retirement earnings. Take a seat with your financial advisor and your estate planning lawyer and make sure that you will be financially safe when you reach your golden years without Social Security advantages. If Social Security comes through, take the family on a journey around the globe!