Will Social Security Be There For You
For years we have been warned that Social Security was running out of money. And for years most of us to include the government ignored the problem.
There was a time when Social Security collected billions more in payroll taxes then it paid out and the federal government simply borrowed money from the fund and gave the retirement fund a IOU. The IOUs total around $2.5 trillion.
It is time for the government to pay up.
This year, for the first time since the 1980s the retirement program is projected to pay out more in benefits than it collects in taxes — nearly $29 billion more.
Assuming that nothing changes with the current system in place the Social Security trust funds will be exhausted by 2037. That should be a sobering thought to anyone who is planning on Social Security as a source of retirement income.
Hopefully the federal government will come to its senses and find a way to secure the retirement nest eggs of an entire generation. However, with the current economic situation it will not be an easy task and in all likelihood will result in higher payroll taxes and reduced benefits in the future.
With so many political futures on the line the odds that Social Security goes bust is slim. Eventually another temporary fix similar to the one in the 80’s will be found. However, every day that goes by the problem only grows and becomes even harder to fix.
If the current situation should teach us anything at all it is that now more then ever it is time to secure your retirement future. While having extra retirement income from Social Security would be nice, it should be thought of as simply, that extra retirement income.
It is up to each person to invest now for their retirement. Everyone needs to take responsibility for their own future and not rely on the government.
If you have not even begun to plan on your retirement or are only saving the bare minimum then you need begin to take control of your future now.
With 401ks, IRAs, stocks, and even starting a part time home based business, there are many things you can do now to secure your future. The key is to start now so you can enjoy your retirement.
Tagged with: Extra Retirement Income • part time home based business • social security
Filed under: retirement income
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Hi, John:
This is an eye-opening report! Sometimes we get feeling too secure in our belief that “the government” will take care of us. All too often, by the time we realize that it may not turn out that way, it’s too late to do anything significant to protect against the problem.
That’s one reason why I am building my home business income and an important reason why EVERYbody should be doing something to plan for their financial future. A backup plan is a must in these “delicate” times.
Affiliate Power Central
Hi John,
You have raised an alarming truth. But if that is what things really may turn out to be, given the revenue and expense deficits, federal cash flow issues, the best thing is indeed – what you have suggested.
It is best to begin building an alternative income resource that we can build and nurture over time. Then, perhaps because, we are the ones running it, we will be more judicious in the business decisions we will make. The financial fruits will not only be for retirement but hopefully for the present time as well.
This info really saved me much time from all the searching I would have had to do!
Now is the time to realize that no one can really assure us of security in the years to come. It is unfortunate but true. We should have plan B and plan C if for some reasons the Plan A fails us.