The Waning of Social Security
Recently arrived is Social Security’s Financial Outlook: The 2014 Social Outlook in Perspective by Alicia H. Munnell, researcher of the Boston’s Center for Retirement Research (August, 2014.)
The six page brief gives a clear analysis of data and succinctly outlines what we have been hearing for a long time, that the Social Security fund is running out of money…but thankfully not immediately. Social Security, for many retirees, is only one of the elements of financial planning. As we obtain increasing information/data about the future of our current Social Security System, (which is described as a pay-as-you-go system) it might very well become one of the lesser elements.
One conclusion taken from Munnell’s brief is that “the long-run deficit can be eliminated only by putting more money into the system or by cutting benefits. There is no silver bullet.” Whether you agree or disagree with the conclusion of the brief, for those approaching retirement, there is an increasing incentive to reserve/allocate funds in order to maintain a comfortable lifestyle into the future.
One of the infographics on my website…(www.attorneybarbaradalvano.weebly.com) A Life Plan…outlines steps (by decades) ..the Plan starts at age 20! Yes, it is never too early to begin your life plan for financial security.
It is also worth noting that the Center for Retirement Research at Boston College (Hovey Hall) was (according to their website) established in 1998 through a grant from the Social Security Administration. I encourage you to access the entire brief at http://crr.bc.edu.