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Why You Can’t Depend On Your Social Security For Retirement
By plrprousers | May 13, 2009
It’s a question that more baby boomers have been asking: why can’t I depend on my Social Security for retirement? After all, you’ve been paying a lot of money towards your Social Security – shouldn’t you be able to get back that money in the form of a generous retirement fund?
Frustrating as it may be, the benefits that you’ll receive from Social Security simply won’t be enough to help you achieve that Florida retirement or travel abroad, let alone meet your basic needs once you reach your retirement age. Is this unfair? Perhaps. But there are very good reasons for why you shouldn’t depend on your Social Security for retirement – so if your 401(k) retirement fund or investments aren’t up to scratch, get them back on track immediately:
It’s All About The Ratio. So what does math have to do with retirement? Simple: there are more baby boomers that are claiming benefits than there are younger people to pay Social Security taxes. Since there are not enough taxpayers to support retirees, those Social Security payments are inevitably going to dwindle down. In other words, the later you retire, the smaller your check will be.
You’ll Need More For Necessities. If there’s one thing that the current recession has highlighted, it’s that you need an emergency cash cushion to protect you from any unforeseen financial strains. There’s just no way that your Social Security payments can protect you in case you fall onto hard times due to medical bills and other expenses.
You’ll Live A Bare Life. No one wants to live out the rest of their days in a bare-bone existence; so if you’re depending on your Social Security to see you through, kiss travel, restaurants and other fun stuff good-bye.
So if you depend on your Social Security for retirement, do yourself a favor by visiting an investment advisor today to check up on the health of your retirement savings. Even if you’re getting a late start to your retirement, you can still save enough to have a semi-comfortable retirement – one that’s significantly better than living on Social Security alone!
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!
Authored by Kenneth Himmler, Sr.
Tags:401k retirement,Florida retirement,investment advisor,retirement,retirement age,retirement fund,retirement plan,retirement planning,retirement savingsRelated posts
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