The Future of Social Security and Pensions

By Mika Hamilton

If you had the chance to retire in your 50s, would you? Of course, everyone could take that opportunity if it was available. One of the most important questions you need to ask yourself is “How much money do I need to retire” and then “Where will my retirement money come from?” If the answer to either question is “I don't know” you need to start planning for your future today. Many people still believe that social security benefits and pensions will support them after retirement. However, predicting the economic climate in the future is not an easy task. There is, currently, a great debate around the future of social security and pensions. Many critics assert that in the next 20 years, social security benefits will disappear all together and businesses will not be able to afford to offer their employees pensions. The responsibility of retirement planning must be done by you and you need to start now.

There are several factors to consider when planning your retirement. These factors include current age, when you plan to retire, your current income, and desired retirement lifestyle. Overwhelmed? Take a deep breath and relax, with the right tools and a solid financial plan you can enjoy your retirement without financial concerns. Planning for your retirement years is one of the most important money decisions you will make in your lifetime. Remember, retirement effects not only you but your children. If you do not plan for your future, your children will be burdened with the financial responsibility.

Research has suggested that almost 25% of Americans believe that their best tool to secure their financial future is the lottery - not by investing or even saving. In addition, it has been reported that families spend at least $50 a week on unneeded luxuries. This money could easily be saved and with a 10% return could accumulate, over 40 years, into a million dollars.

Many people think they know how much money they will need to have for retirement but they are often incorrect. Experts disagree on how to determine how much money you will need to retire comfortably and maintain your lifestyle. Some financial experts believe that you will need more than a million dollars. While other experts believe that the average individual will need 70% of their gross yearly income for each year of retirement. Haven't started to save yet? You are not only one, studies report that only 12% of people will ever reach this level of savings. If you have yet to plan for your retirement start today!

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