Setup your own retirement
Social Security Problems and more reasons to setup your own retirement
The nation’s Social Security program is running out of money with benefits on track to be reduced by around 2035 unless Congress steps in, according to a report released Monday by the Trump administration. … The government also concluded Monday that Medicare’s hospital insurance trust fund will run out of money in 2026.
If you are age 55 you should be able to receive your full benefits according to the Social Security Administration at least at this time.
If you are age 26 then this could be a problem because when you reach 62 your scheduled benefits could be reduced because the Social Security fund is running out of money.
Over 63 million people, or more than 1 in every 6 U.S. residents, collected Social Security benefits in June 2019. While older Americans make up about 4 in 5 beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI) or were young survivors of deceased workers.
Should I count on Social Security for Retirement?
No. Social Security was never meant to be the sole source of income in retirement. It is often said that a comfortable retirement is based on a “three-legged stool” of Social Security, pensions and savings. American workers should be saving for their retirement on a personal basis and through employer-sponsored or other retirement plans. Unfortunately pensions aren’t available like they used to be so you will need to save for yourself.
I hear that Social Security has a big financial problem? Why?
Social Security’s financing problems are long term and will not affect today’s retirees and near-retirees, but they are very large and serious. People are living longer, the first baby boomers are nearing retirement, and the birth rate is low. The result is that the worker-to-beneficiary ratio has fallen from 16.5-to-1 in 1950 to 3.3-to-1 today. Within 40 years it will be 2-to-1. At this ratio there will not be enough workers to pay scheduled benefits at current tax rates.
Make sure you set aside some money for retirement or get a job that provides retirement benefits (these jobs are dwindling by the minute).