Retirement Planning

Planning for retirement should not be based on Social Security alone, but rather by saving portions of personal earned wages and putting finances into long-term investments. Depending on Social Security as the only income after retiring is an unsafe and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; this money is used for older generations that will file for these benefits before the younger people working, in the early 21 century, ever receive a chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved by an individual to put toward personal goals will reward greatly. By taking the time to research and plan for a retirement it will let a person prepare for the necessities that will be needed. People should figure out the cost of living required to support an individual upon retirement because forthcoming financial situations will be harder to face, unless a retirement is planned for by saving and investing but not to be covered by Social Security alone.

Social Security is not a reliable investment for total financial stability after retiring. Social Security was created in 1935 to ensure financial stability in the lives of the elderly and disabled (Dewitt, 2010). Later there was an additional benefit added to include the families of the disabled or diseased that had contributed to the program. Realistically, for every employee working hard and trusting in the United States Government to put aside money for a secure future, there are two, three, or even more who may be receiving additional support by the tax money taken out of the employees checks. As a result of these changes, the...

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...d successful stress free retirement. Preparing for the realistic fact that Social Security is not to be the only financial source after retirement is the safest way to secure a stable future.

References

Cannon, Miller, Pandher (2006). Risk and Return in the U.S. Housing Market: A Cross-Sectional Asset-Pricing Approach, Real Estate Economics, 34(4), 519-52.

Curatola, Trewin (2010). Retirement Planning in Light of Life Expectancy and Gender Issues, Journal of Financial Service Professionals, 64(5), 70-80.

Dewitt (2010). The Development of Social Security in America, Social Security Bulletin, 70(3), 1-26.

Olsen, Whitman (2007). Effective Retirement Savings Programs, Social Security Bulletin, 67(3), 53-72.