Home >>

Retirement Planning and Social Security Benefits
Published By Athena on 2011-11-11 802 Views


Many individuals approaching retirement age may depend on Social Security as their primary income source. With the things people are hearing about how underfunded the system is, it is not unusual that doubts abound on how secure our Social Security really is.

The most estimable matter that anybody can do is offer an opinion on the financial competence of the Social Security system. As of now, those who are already receiving benefits will be covered to the extent of the government's capacity.


Many individuals approaching retirement age may depend on Social Security as their primary income source. With the things people are hearing about how underfunded the system is, it is not unusual that doubts abound on how secure our Social Security really is.

The most estimable matter that anybody can do is offer an opinion on the financial competence of the Social Security system. As of now, those who are already receiving benefits will be covered to the extent of the government's capacity.

The potential problems for them are twofold: first off, inflation can easily devaluate any fixed income retirement plan. Social Security has a built-in cost-of-living adjuster, but any extended inflationary cycle would almost certainly involve necessary modification. This can happen if the government is deficient in funds to override double-digit inflation. Second, the trend in Congress is aimed at shifting costs, such as Medicare, to the recipients and taxing benefits at a later date. Either of these can create mayhem when you're living on a limited income.

If a married retired couple will both be living off on retirement benefits, and one faces death, the survivor may have to deal with inadequate income to fund the daily needs. It would be best to have another income source, such as a part time job and formulate a sav­ings plan that could eventually provide extra income outside of Social Security.

For younger workers just getting into the system, the future of Social Security cannot be fully depended upon. If there will be fewer new workers contributing to the sys­tem, and recipients are living longer, this would cause a big problem if not remedied by the government. It is almost certain that retirement ages will be pushed back, and benefits will be cut down beyond in a few decades from now. In 1935 the system started with seventeen contribu­tors for each recipient. By 1980 it was seven to one, by the year 2000 about four to one. If this trend stays, by 2025 there will be only two contributors for every recipient. The worse that could happen is that, the system will be bankrupt earlier than expected. It is just sensible for anyone to have an alternate retirement plan.
 

Post Comment Comments (0) Report This



More Articles Specially Recommended for You:

Good Posture Helps Minimize Back Pain

Good posture means maintaining the three gentle curves in your spine. Sitting The strain on the spine whi

Written By : Athena
Turn Your Anger Into Something Useful

Simply feeling angry is not wrong. But when it leads a person to become destructive, either verbally, physically or psychologically, then it bec

Written By : Athena
Tips on Finding a Trustworthy Caregiver for Your Children

Your children are precious to you. Here are some tips you could use to help you search for the caregiver you will need for them. A referral service

Written By : Athena
Practical Ways to Deal With Stress

Stress is a fact of life that everyone has to deal with. Because the world is a merry-go-round of changes we are regularly faced with situations

Written By : Athena
A Helpful Guide to Asian Noodles

Here are the most common Asian noodles you’re likely to see in stores or on menus. When shopping, remember that dried noodles will keep in

Written By : Athena
Urban Exploration: trespassing or adventure - the stuff you really should know before you urbex

What is Urban Exploration? Urban Exploration or 'Urbexing' is, put simply, an interest in deserted, abandoned and derelict

Written By :10prestoncourt
Sourcing Raffle Prizes and Auction Lots

Holding a raffle or auction is a great way to raise funds for your cause. However, you need to go about it in the right way. Who t

Written By :10prestoncourt
Event Publicity tried and tested ways to reach the right audience

You don't need to spend lots of money to publicize your event, you just need to follow some tried and tested methods. Establish

Written By :10prestoncourt
How to create eye-catching event flyers

In a world where we are bombarded with information everywhere we go, it is very easy to overlook a neatly typed up event poster. 

Written By :10prestoncourt
Howtoee Review

Howtoee is a new revenue sharing site. It currently pays $5 per article and gives 100% revenue from Google Adsense. The site looks clean but I a

Written By :11tatic

COMMENTS



LogIn or SignUp! now to post your comments for this article.