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Preplan Your Retirement Without Relying On Social Security

728 words - 3 pages

Preplan your retirement without relying on Social Security
Preparing for retirement is the most beneficial deed any one individual could possibly ever do for themselves. In doing so, an individual will avoid a stressful situation with attempting to rely on Social Security when they retire.
Americans, especially young Americans, must start planning for their retirement now because Social Security may not be capable of providing the appropriate amount of funds needed to survive as a retired American in the United States. Social Security will not pay a retiree anywhere remotely close to the amount of money he or she earned while working. Americans will be faced with financial hardship and ...view middle of the document...

Just over a third (34%) of retirees age 65 and older got 90% or more of their retirement income from Social Security in 2008. And the majority of retirees age 65 and older (64%) get at least half of their retirement income in the form of a Social Security payment (U.S. News and World Report 2011) Getting by on Social Security alone or with a small amount of savings will generally require some cost-cutting. The average monthly Social Security check was $1,178.80 in March 2011. A dual-earner couple, each receiving the average benefit, would receive $28,291.20 annually, which would be adjusted each year for inflation (U.S. News and World Report 2011).
Social Security replaces about 40 percent of an average wage earner’s income after retiring, and most financial advisors say retirees will need 70 percent or more of pre-retirement earnings to live comfortably (U.S. News and World Report 2011). To have a comfortable retirement, Americans need much more than just Social Security. They also need private pensions, savings and investments. Social Security is earned through work and even though retirement is also earned through working, the pay for retirement will be a much higher amount than social security. In this day an...

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