There has been warning after warning about the looming shortfall between what people have saved and what they will actually need in order to maintain their lifestyle in retirement. Most Americans are counting on Social Security as their primary source of retirement income, with everything else being additional income.
The main reason for this is that millions of American’s don’t have any sort of retirement plan at the places where they work, and millions more can barely earn enough to cover their current needs, much less save anything for retirement. According to the Social Security Administration, 64% of Americans age 65 and up get more than half their income from Social Security, and nearly tree-quarters of Americans take their Social Security benefits before reaching their full retirement age.
With stagnating incomes becoming the norm, most working household families have no retirement savings. Most financial advisors will tell you how vital it is to start saving for retirement long before your retirement age. Many people wait until middle age to do so, and it means that there’s a lot of catching up to do. Depending on Social Security as your main income can be tricky, especially with its future up in the air.
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|Kenneth G. Marks has been practicing personal injury law since he was admitted to the California Bar in 1981. www.KmarksLaw.com|