The stock market keeps falling, the market economy keeps shrinking, and social security is in much worse shape than we all expected. These are some of the reasons why there is uncertainty about the future.
Social security used to compose 39% of retirees’ income, now is expected to get much smaller. Social security was created to support retirees. According to the National Center for Health Statistics, the average lifespan was 63 back in the 1940’s, now it is over 77. This means that more of a burden is carried by the tax payers than in previous years. By the year 2030, when all the baby boomers are ready to retire, it is possible that the funds will not be available to a certain extent. It is very important for every tax payer to start a 401K plan or other type of personal savings.
The government has been extending the age of getting the full amount of social security benefits. Now, it is between ages 65 to 67. Bonuses and raises are provided for people who work past the normal retirement age. It is not a smart move to rely on social security after you are old and grey. Contribution to IRA accounts, mutual funds, CDs, and money markets will be on the individuals. Even now that the interest rate is low; you should still keep contributing to your savings account every month.
Social security hasn’t been a hot topic for all the presidential candidates. It is the most essential and basic retirement solution for most middle class Americans. I don’t know where the country will be without the social security system.
http://finance.yahoo.com/how-to-guide/retirement/29029
http://en.wikipedia.org/wiki/Social_Security_(United_States)
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