What should we do about Social Security? Should the government allow individuals to allocate a portion the social security funds? What will the government do about the baby boomers? What will government do about the echo generation? Are these even the questions we should be asking?
The reality staring at each of us is that Social Security, more than likely, will not be there for retirees in the not too distant future. The question each of us should be asking is what am I doing to prepare for retirement? People are saying they can’t rely on Social Security for their retirement, but they still are not saving adequately themselves. Though people’s words are say they can’t rely on Soc. Sec., their actions are saying that they will rely on Soc. Sec. The fact remains that something needs to be done to preserve Soc. Sec., but even if it is preserved Soc. Sec. will still not fully fund a person’s retirement. The question that should be plaguing peoples minds is what should I be doing to fund my retirement?
2 comments:
Social Security was doomed from the start. The theory was that every American would take out what they put into it at retirement, but ironically no one seemed to consider the time value of money. By the time our graduating class retires individuals will need millions saved up in order to have a moderately comfortable retirement.
Allowing Americans to invest their Social Security portion is a great start, but likely will not solve the problem.
Mark my words - social security will still be around when you retire, and it still won't work properly. There will just be some new bandaids on it.
And don't forget about Medicare. It is organized the same way as social security, and has the same problems.
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