Will Social Security be there when you retire?

I just received our yearly Social Security Report of earnings and benefits. It states that you should receive this report once per year appr. 3 months prior to your birthday. Today it had a flyer with it along with the report, figured I would read through it since I recently heard that the magic date of 2041 could change to 2037. Well ironically one of the headlines on the flyer was “Will Social Security still be around when I retire?” Well the article does go on to say that the Trust Funds will be depleted by 2041, or perhaps 2037 if the recent reports are correct. But it went on to say, direct quote, “However, this does not mean that Social Security benefit payments would disappear. Even if modifications to the program are not made, there would still be enough funds in 2041 from taxes paid by workers to pay about $780 for every $1,000 in benefits scheduled” (78% of whatever your benefit is to be). Interesting information to have when planning for your future.

That probably won’t cover the 70-80% of preretirement savings that they cited as to enjoy a comfortable retirement. For an average worker, SS covers about 40% of annual preretirement earnings according to the article.

There was some really great information and they gave the socialsecurity.gov website for more information. They also gave another website, choosetosave.org, that has a Ballpark Estimate Link that can help you figure out what other savings plans you may need to live the lifestyle you want in your retirement.

Thinking about retirement can be a scary thing, but knowledge is power, the more information you have the better plans you can put in place for the future.

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~ by debt2dreams on May 14, 2009.

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