Preplan Your Retirement Without Relying on Social Security

Preplan your retirement without relying on Social Security

Preparing for retirement is the most beneficial deed any one individual could possibly ever do for themselves. In doing so, an individual will avoid a stressful situation with attempting to rely on Social Security when they retire.

Americans, especially young Americans, must start planning for their retirement now because Social Security may not be capable of providing the appropriate amount of funds needed to survive as a retired American in the United States. Social Security will not pay a retiree anywhere remotely close to the amount of money he or she earned while working. Americans will be faced with financial hardship and stressful situations if they fail to plan their retirement now.

As the post-war Baby Boom generation enters retirement amid concerns about the long-term financing of Social Security, it is critical for Congress, policymakers, and the general public to recognize the central role of Social Security as a source of retirement income. Social Security remains the only universal source of retirement income for the vast majority of Americans. And, for most of us, it is the most relevant source of retirement income after a lifetime of hard work. Yet Social Security was never meant to be the sole or even primary source of retirement income (Boivie, Ilana. (2007). To address apparent shortfalls in retirement income, Congress has tried to address retirement income security with changes in the tax code to encourage the growth of private pensions such as traditional defined-benefit pension plans, 401(k) type defined-contribution savings plans, and Individual Retirement Accounts, among a slew of other savings vehicles.

While it's generally a good idea to supplement your Social Security income with a traditional pension or personal savings, millions of people count on Social Security as their primary source of retirement income. Just over a third (34%) of retirees age 65 and older got 90% or...