Learn About the State of Social Security and How It May Affect Your Retirement
For decades, people have thought Social Security benefits will be a focal point for their retirement savings plan. However, as inflation continues, social security remains stagnant (or close to stagnant). Worse yet, what may seem like a viable addition to your retirement savings plan today may be a much smaller pool.
What is the future of Social Security? How will it affect your retirement savings plan? Read on to learn more.
The History of Social Security
Social Security has been a federal program to support retirement since the 1950s. When it began, many women did not work, and therefore did not pay into or receive social security benefits. Furthermore, people often had shorter life spans, requiring less of a financial payout over the years. It should be noted that at the time Social Security began, 16.5 workers supported each person’s Social Security benefits. to However, the Social Security system is under increasing strain. Better health care and longer life spans have resulted in an increasing number of people drawing Social Security benefits. As the baby boom generation (those born between 1946 and 1964) has begun to retire, even greater demands are being placed on the system.
Now, women and men work, the workforce has doubled, and people are living much longer on average. As a result, there is more of a financial demand for Social Security. Now, only 2.8 workers support each Social Security beneficiary.
How Should the State of Social Security Fit Into Your Retirement Savings Plan
Social Security is dwindling. It will still be an option when you retire. However, it will not cover any real expenses for your retirement. Furthermore, if there is less money for the benefits available, there will be less money for each individual beneficiary than there was when the program began.
As a result, you must plan for your retirement through other means. Beginning a retirement savings plan will help you save money so your Social Security benefits can be supplemental income for your retirement. Working with a qualified retirement savings plan advisor will help you properly plan for your retirement without depending on Social Security.
Conclusion
If you are looking for a retirement savings plan to help you plan for retirement beyond Social Security, contact the retirement planning specialists at Retirement Plan Services Group. Call Scott Tanker at 609-922-0201 or email scott.tanker@pbsrep.com. Please view additional blogs at rpsg.com/blog to learn more about what to expect from your retirement savings plan and advisor.