Sunday, January 3, 2016

Social Security and the Need for Individuals to Save and Invest for Adequate Retirement Income

Social Security in an Election Year offers this food for thought:

"Currently, 36 percent of retirees rely on Social Security for 90 percent or more of their income; over all, 65 percent of retirees rely on it for more than half of their income. The average monthly benefit hovers around $1,300. Retirement security won’t be any better for those now in their 50s. The Government Accountability Office recently found that 52 percent of American households with someone 55 or older have nothing saved for retirement and that only half of that 52 percent will get anything from a company pension. For those ages 55 to 64 with retirement savings, the median amount is barely in the six figures.

Younger workers are arguably worse off, because saving has become increasingly difficult, or impossible, in the face of stagnating wages, high debt, high rents and the lack of employer-provided retirement benefits. In 2013, 44 percent of workers on the lower half of the income scale had a retirement plan at work, down from 54 percent in 1995, according to data from the Federal Reserve."

Summing Up

Middle age and young people must not depend totally on Social Security to provide them with an adequate retirement income.

Get started now because time flies!

Developing the habit of continuous saving and investing at an early age is a great idea for a New Year's resolution.

At least that's my take.

Thanks. Bob.

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