Social Security Wake Up Call
Today The New York Times reported this year the Social Security system will payout more in benefits than it receives in payroll taxes. The Congressional Budget Office previously estimated this would not happen until at least 2016. The head of the Social Security Administration has announced that this will not impact current benefits and retirees will keep receiving their checks.
This is the first of many outwardly signs of cracks in a system that far too many people will rely on as their sole source of income during their retirement years. As more baby boomers retire and stop paying into the program, the program payouts will not exceed revenues, no matter how well the economy performs.
The Social Security system was designed to be a safety net of protection for the most vulnerable members of our society. However, one of the unintended consequences of the program is most people stopped adequately planning for their retirements because they had the misguided belief that the system would take care of their needs.
Whether you are a recent graduate just entering the workforce or a seasoned employee in the prime of your career, this should serve as a wake up call reinforcing the importance of preparing for your retirement. Take the time now to understand the retirement options available to you and make it a priority to put aside enough to fund your retirement years. You are ultimately responsible for your quality of life during your retired years.
