Myth: Social Security will provide most of the income you need in retirement.
Fact: It’s likely that Social Security will provide a smaller portion of retirement income than you think.
There’s no doubt about it: Social Security is an important source of retirement income for most Americans. According to the Social Security Administration, more than nine out of ten individuals age 65 and older receive Social Security benefits.
Today, it may be unwise to rely too heavily on Social Security, because to keep the system solvent, changes will likely have to be made to it. The younger and wealthier you are, the more likely these changes will affect you. Whether retirement is years away or just around the corner, keep in mind that Social Security was never meant to be the sole source of income for retirees. As President Dwight D. Eisenhower once said, “The system is not intended as a substitute for private savings, pension plans, and insurance protection. It is, rather, intended as the foundation upon which these other forms of protection can be soundly built.”
No matter what the future holds for Social Security, focus on saving as much for retirement as possible. You can do so by contributing to tax-deferred vehicles such as IRAs, 401(k)s, and other employee-sponsored plans, as well as by investing in stocks, bonds, and mutual funds. When combined with your future Social Security benefits, your retirement savings and pension benefits can help ensure that you’ll have enough income to see you through retirement.
*Original article from Broadridge/Forefield Newsletter
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