Baby Boomers and Social Security
By Anonymous
Whether you want to think about it or not there is a reckoning coming for retirees in the not too distant future. The Social Security and Medicare systems will not be able fund all of their obligations in the future. As to when this will happen depends on who you listen to, but it is going to happen!
As initially laid out the Social Securrity system was to be a safety net. Today however, it has become a sole source of income for many retirees. For Baby Boomers approaching retirement, this is a special concern since the SSI and Medicare programs could end up being very different from what they are today. If you are expecting Uncle Sam to keep you financially sound in your golden years, you might want to rethink your strategy.
There are a number of things you can do right now to make sure you are not entirely dependent on the government when you have retired. The earlier you start and the younger you are, the better.
If your employer has a 401k or 403b program - MAX IT OUT. Don't just meet the match that your employer gives you, put in as much as you are allowed to. The more you contribute and the earlier you start can mean the difference between a comfortable retirement and a trailer. Start an IRA and MAX IT OUT. Even if you do not meet the guidelines for tax deductibility.
If You have a company pension, consider yourself blessed as many don't offer any these days. You still should contribute to an IRA and a 401k if eligible.
I know it can be difficult to save when you have kids, a mortgage and all the expenses of everyday living, but you need to decide how your retirement years will be spent. If you don't plan and save now and rely on the government for financial support you may not be able to enjoy your retirement as much as you had hoped.
The question you need to ask is: Doing what I am doing now, will I be able to meet my retirement goals?
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