Social Security Questions: Will Social Security Be Enough To Live On In Retirement?Submitted by Reby Advisors | Certified Financial Planners | Danbury, CT on January 1st, 2015
Retirement is supposed to be that stage in your life when worries diminish—no more kids to support and many of your financial responsibilities are behind you (mortgage, car payments, etc.).
Likewise, it’s expected that at around this time, people have already set aside enough money to cover them until their dying day. They have pensions, Social Security, and other fund resources that they built up through many years of being members of the workforce.
This is the ideal situation, but a great number of professionals have expressed that they do not see their retirement as the “golden years” because they do not believe they have stashed enough money to take care of all the expenses that come with old age — even with Social Security and pensions.
Financial advisers tell all those who ask, “Will Social Security be enough to live on retirement?” that without sufficient personal savings, Social Security often will not suffice.
The Real Situation
Currently, the provision of the system for retirees is about $1,200 every month on average. If it’s not enough for one person’s current lifestyle, it also won’t be enough for retirement.
What Needs to Be Done
So, think about what you will really need when you retire – you’re dealing with aging here. You will be dealing with medical concerns, and don’t be fooled into thinking that Medicare will take care of all of that. About a quarter of retirees nowadays say they spend a third of their monthly income solely on medical expenses.
And then there are those unfortunate accidents common among people who deal with mobility issues; treatment and a temporary stay at a nursing home will easily wipe out Social Security provisions. Nursing homes can collect as much as $200 a day or more.
And lastly, it’s important to consider when exactly you are going to retire. Sixty-five years of age is still what most professionals target, but due to the unstable economic scene and failing health, many are prompted to retire early, which then leads them to collect Social Security early as well. Early collection of Social Security slashes the monthly benefit significantly.
With all these important factors of retirement, it’s safe to say that anybody thinking that Social Security is enough to provide for the winter of their life needs to make changes now. Otherwise, they just wouldn’t have enough money to meet their desire to live comfortably.