Why You Shouldn’t Depend on Social Security Anymore

If you’re one of those people that intend on relying on social security for their retirement, you shouldn’t. While social security is intended to be used by people when they reach their retirement age, it may not be around for that much longer. In order to properly plan for your retirement years, you should assume that you’ll be paying for it all yourself without depending on social security. Although that may not be desirable for some people, it may be inevitable based on the current data. It’s said that younger workers who have higher-incomes shouldn’t intend on getting the same level of benefits that everyone’s parents and grandparents are receiving. Rates may be even lower by the time the current generation reaches their retirement age, or even maybe completely gone again.

Given the current birth rate in the United States, being at only 13.5 babies being born for every 1,000 people is much lower than it was in the the early 1950′s when the rate of birth was 25 babies for every 1,000 people and 15 babies per 1,000 people in the 1970′s. With the current population living longer and having fewer babies, more people are reaching their retirement age while less people are entering the workforce and paying into social security so there’s more people taking out funds then there is people paying into the fund.

As that continues to happen, the money in the social security fund is going to eventually dry up and there will be nothing left. And according to the data, that’s what’s going to happen. Something obviously needs to change. But therein lies the problem because politicians are afraid to even touch the subject because people who are currently of retirement age most often they’re the ones getting involved in political issues and voting.

One solution to fix the dwindling social security fund would to be to raise the required age to receive benefits, there aren’t many ways the problem can be fixed. That would mean people working to their eighties before seeing social security benefits. If that’s the case, people should be planning to fund their own retirement instead depending solely on social security. The sooner the better. And that is Why You Shouldn’t Depend on Social Security Anymore, even if the problem does get resolved with a new solution; Saving your own funds into a retirement account is still beneficial because you’ll have more money by the time you hit your retired years and be more financially stable as opposed to just living on social security means.

So, regardless of whether you’re 22 or 45, the sooner you start saving, the better, because that’ll mean the more you have just in case social security runs out and there’s nothing left. Start a 401K with your employer or sign up for a Roth IRA yourself so money is automatically deducted from your checking account and saved for you. It’s a small step towards helping your future in a major way.

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