Finance Errors – Counting on Social Security

While many people believe that a plush and easy retirement awaits them in the future because they are paying for social security and their retirement now, you should not be so certain about this. While social security is a viable way that many of the elderly of the past have had a decent retirement, it is far from the only way, and more uncertain than other methods. This becomes even more prevalent when you consider that soon the trust fund developed has been scheduled to run out.

John Labunski

John Labunski

That is correct. It is believed by some financial experts that by the year 2037, the social security common wealth fund will dry up before a substantial amount of the workforce even comes close to retiring. This means that when the time comes to retire, the average payout will only be about three-quarters of what it once was, as people will only be getting the same amount that they were putting in. This means your financial future now more than ever is in your own hands.

If you rely on social security to provide you with a comfortable means for retirement, you may be setting yourself up for disappointment. This however, is no reason to panic. In fact, many people do not need to live off of social security to have a successful retirement. Social security has often just been a base living rate anyway, and those who take proper steps now can plan for a more financially sound retirement.

John Labunski is a finance expert that encourages people to come up with their own retirement strategies and budgets.