Planning for retirement is always a good thing. The more financial planning that you do, the better future you will have as a retiree.
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Aging Baby Boomers -- can America pay for their retirement? Social Security Administration officials are now reporting that as Baby Boomers leave the work force, America is facing the lowest ratio of persons working per retiree in the history of the program. Boomers, like much of the current working American population, have paid into Social Security for most, if not all, of their working lives. This being the case, what’s all the fuss about? Is there a crisis concerning the retirement of Baby Boomers? When I have discussed this topic among friends, the general consensus is that the Social Security System is going to fail. I must admit that the prospect of having paid into a retirement fund my entire life and never being able to draw from it angers me. Is this crisis real or just a figment of our collective imaginations?…
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The transition from a working life to the retirement years can be a difficult process for aging adults as giving up higher salaries for the amount paid for Social Security is drastically different. Forcing retired adults to look for supplement income during this stage at a lower status than previously held in a prior position. Most companies offer a pension or 401k plan to help employees plan for a better retirement as it is almost impossible to live on Social Security alone. This change also plays a large factor on how the individual views their personal self-worth. Instead of priding themselves in the knowledge of an occupation, retirement forces the person to give up that role in search of another source to occupy their time. (Zastrow & Kirst-Ashman, 2010). Transition from work to retirement Cont.…
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During the Great Depression programs such as, social security, and pensions did not exist. Frank Delano Roosevelt created Welfare reform for older Americans. The depression made it necessary for means to assist the poor. As well as welfare programs FDR created the NRA, WPA, and PWA. The idea of Social Security is that employers and employees would contribute to a pension fund. Another name for Social security is called a “transfer program”. Younger generations are transferring income to the older generation. In return the younger generation will hopefully be rewarded income by the generation after them. This fund is payable upon retirements. Social security was a secure and guaranteeing way to aid older citizens. Social security has allowed the retirees to live longer and in better care.…
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Eventually everyone wants to retire. In order to do that we need enough income to live on but not everyone has the luxury to have financial stability. Since the mid 1930s, the government has tried to ensure that everyone should at least have some income after leaving the workforce.…
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Although Social Security can continue to pay full benefits as long as new workers continue to pay new payroll taxes, planning for retirement beats relying on a fixed monthly check from Social Security. Many Americans fear that Social Security will collapse or have no funds when they reach retirement, and the expenses of health costs such as Medicare deductibles, co-pays, and premiums further the strain on the retiree.…
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The problem with Social Security is that with the “Baby Boom” generation reaching retirement age the current workers to beneficiary ratio is dropping so that by 2016 program expenses will begin to exceed revenues. During 2008, the fund held $2.4 trillion in government bonds, IOUs backed by the government’s general fund. These borrowed funds are part of the national debt that we keep hearing about these days. “By 2016, the government is expected to have borrowed nearly $3.7 trillion against the Social Security Trust fund” (Social Security / Trust Fund, 2008). Something needs to be done.…
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Think about what kind of lifestyle you want to live when you retire. Setting financial goals to meet you retirement expectations is very important. Breaking down the everyday expenses like the costs of living, including bills, food, rent, or mortgage. Family costs like paying for your children’s college education and other costs of their well being, possibly supporting your parents, or trust funds for family members and heirs. Then there are the extra retirement costs like vacations, hobbies, and entertainment. Think about how expensive these costs are today, and how they are only going to increase in price over time. With the inflation rate increasing three to four percent every year (Baijtelsmit & Rastelli, 2008), there is no possible way Social Security can finance all your retirement needs if you plan on living comfortably and here is why.…
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Social Security, as we know it, ensures an acceptable standard of living for all citizens, and provides a safety net for those who, due to age or disability, are no longer able to support themselves by labor. It's benefits are, as stated by author Joseph White, "guaranteed, adjusted annually to account for inflation, paid for as long as the recipient lives, and based on collectively set standards of need and contribution, as opposed to returns and investments in markets" (White 43). The entire concept of privatization distracts us from the reason behind Social Security that ALL Americans would have the means to live in dignity. As such, to perform its proper role in the protection of our citizens, social insurance should be "national, compulsory, and contributory, and provide benefits as a matter of right" (Brown 10).…
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Social Security is considered a benefit program that is there to help people when it is time for the person to retire. Social Security fits into my retirement plan, because it will be one of my incomes in the future that I may depend on to keep my bills up, but since no one is sure if Social Security will continue you should have money set aside…
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In the United States, many people believe that Social Security will be enough to support them upon retirement and have not prepared themselves adequately by establishing pensions, retirement plans and savings accounts. Believing this way can get many people into trouble once they reach an age that they would like to retire. These people are finding out that Social Security is just not enough by itself. Many people are discovering that they need other means of income along with Social Security to survive and pay the bills. If this has not been planned for ahead of time, many people find themselves working past retirement age, or moving in with family as a means to get by. When Social Security was created, the idea was that it would support a person upon retirement. However, at that time, people were not living as long as they do now and the standard of living was much lower. In 1930, the Census, which is a count of all of the people in the United States, found that 58% of men over 65 were still working; by 2002, the number had declined to 18% (New York Times, Nov. 11, 2010). A fact such as this is something that could put a significant strain on the Social Security Administration making many wonder if it will be around for much longer, considering Social Security did not make adjustments for inflation, it pays more than just the retired worker, and the baby boomer generation was not expected when it was created, with little solutions to resolve these issues.…
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Americans need to plan for retirement so they do not have to rely solely on Social Security income to care for them financially after that point. This year the Social Security Administration is projecting, it will collect less in payroll taxes than it pays out in retirement, disability, and survivor benefits. Even though the government economists are saying that the economy and social security will balance out after the Baby Boom era of retirees passes on. The federal government because of shortfalls in revenue, is currently finding money from elsewhere to help pay for social security benefits. People, who have a pension, 401k, or saving funds, do not have to rely solely on social security benefits to live after retirement.…
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A thesis statement takes a clear position on an issue. This is different from normal topic sentences because the thesis statement cannot be neutral. This is your own opinion that you intend to back up (think of it like a debate). The thesis statement is your reason and motivation for writing. A non-thesis thesis does none of these things.…
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Social Security was established in 1935 and has been the largest social welfare program in the United States since. Its intended outcomes and funding comes from mandatory insurance system that levies a tax on payrolls and matched funds with the contributions of employers that are kept in a trust fund that pays retirement pensions based on prior earnings in the labor market. The targeted population is for workers that have reached the age of 66 or born after 1942. They receive a pension through the social security program, but also through private supplemental savings and pensions (Jillian Jimenez, 2012).…
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If you make a lot of money, than you will get a larger benefit amount than the workers who do not make as much. But, the benefit formula is set up so that a person making lower wages will get a higher percentage of their pre-retirement earnings. There are nine in 10 American retirees who receive social security. For about 2/3 of the elders today, social security is their major source of income. For 1/3 of our elders, social security is their only income. There is only 11% of American seniors who live in poverty. Without social security there would be about ½ of our elderly living in poverty. People can retire normally at the age of 62, or wait until the full age of 65 and receive full benefits. But, starting this year, the age will gradually start to increase until it reaches 67 for people born in 1960 or later. The reason for this is because people are living longer, healthier lives than before. When the social security program started in 1935, a 65-year-old American had an average life expectancy of 12 ½ more years after retirement. Today the life expectancy is 17 ½ years and rising. Beginning in about 2008 and about 30 years, there will be about 79 million baby boomers retiring. This means there will be twice as many elderly as what there is today. When this happens there is not…
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Many of us in this day and age are familiar with the Social Security Act of 1935 as the roots still bury deep in American history. It was on August 14, 1935, an important day in time, when former President Franklin D. Roosevelt drafted his signature to carry out the Social Security Act (FDR Signs Social Security Act, History). In President Roosevelt’s very own words, "We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family ..." This law did just that. Initially, under the 1935 law, what we now know as Social Security only compensated retirement benefits to…
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