Social Security is a topic that comes up frequently in conversations about retirement. In the past few years, a common question about these benefits has been voiced again and again by many who wonder if Social Security will even be available by the time they reach retirement age. According to the government, there is enough money sitting in the Social Security system, to pay out benefits until the year 2035. After that point, social security benefit payouts may be lowered.
The upcoming shortfall in the Social Security budget, according to those that oversee the disbursement, is due to the fact that those who were born between the years of 1946 and 1964, also known as the Baby Boomer generation, are now retiring. Until now, there have always been more people working and paying into the Social Security system than there were receiving benefits from the system. In fact, in 1950, there were 16.5 working individuals for each single person receiving benefits.
Due to a declining birth rate and longer life expectancy, the balance of those paying in and those receiving benefits is already beginning to change in a way that will not benefit any who are counting on Social Security as a major part of their retirement funding. Current projections state that in 2040, there will be barely over 2 workers for each beneficiary.
One of the most beneficial things that individuals can do today, in order to prepare for retirement, is to realize that they must not depend on receiving the current estimated amounts from the Social Security system. Contact Copelin Financial Advisors to start the process of evaluating your retirement savings plan today.