Will You Receive Social Security Benefits?
You’ve been working hard your entire life so you will get to enjoy the full Social Security benefits that come once you retire, right? You might assume the answer is ‘absolutely’, but you’d be surprised. Your current age largely depends on how much of the benefit you will reap. If you’re over 65, don’t worry, you’re covered fully. Anyone between the ages of 45-65 is in a gray area, and if you’re under 45, you should be very concerned.
What’s the Problem?
The root of the problem lies with the fact that more benefits are being paid out annually than what is going in. Young workers aren’t putting in enough to support the baby boomer generation, leaving a shortcoming of $200 billion a year, and in turn the trust fund could be completely gone in a matter of 20 years. Of course, the government will continue to come up with possible solutions to fix this disastrous problem – anything from rising the eligibility age to factoring cost-of-living expenses differently.
What Should You Do?
One way or another, you can bet that Social Security will be around for a very long time, but just don’t count on it to be as generous as it was in the past. Moral of the story – SAVE, SAVE, SAVE! Don’t rely on Social Security benefits to aid you through your retirement. Talk to your financial advisor about the best way to accumulate retirement funds to ensure that your golden years are comfortable.