Don’t Be Naive|Social Security, A Retirement Benefit??
Play it save, be smart with your financial affairs; do not count on social security being available for you when you reach retirement. Find another back-up plan for your retirement income.
That sounds good but is there a safe, stable source of retirement income available today? More on that later.
Here Come The Baby Boomers
There are approximately 72 million baby boomers left; these boomers make up almost 25% of the current U.S population. It’s estimated that every day 10,000 baby boomers turn 65 years old.
Over the next 18 years, 72 million boomers will be hitting retirement and expecting to collect their social security benefit check. Is the social security system ready to pay out benefits to 72 million baby boomers? It’s a safe bet that the answer is no. In fact the system is going bankrupt and some say it will run out of money by the year 2037.
Retirees used to rely upon social security as their safety net, but that is no longer a wise financial move. Social security looks like it will go the way of the do-do bird and become extinct.
How To Replace Steady?
During your working years your paycheck provides you with a steady, somewhat guaranteed stream of income. If social security weren’t broken it would have replace that regular paycheck when you retired. You would have received a guaranteed payment for the same amount of money, deposited to your account every single month.
Since that’s not the case anymore do not include social security benefits in your calculations when you work with a retirement calculator or a financial planner.
A smart financial move is to prepare for retirement with other sources of retirement income besides social security; unless you want to be forced back to work because you run out of money.
What Investment Is Safe Anymore?
Annuities make a better retirement back-up plan than social security.
If you want a regular paycheck in retirement, annuities may be the answer. Many retirees like the guaranteed stream of income from annuities.
Annuities can be expensive and complex; but in exchange for that you get safety, stability and that guaranteed stream of income, like your paycheck. Annuities turn your lump sum 401k distribution into a monthly stream of regular income.
The New Retirement
The stock market upheaval has scared many investors. When you have 30 or more years in retirement, you want some guarantees. Stock markets do not offer guarantees, but annuities do.