Best to think about it before you get there, way before you get there.
Many don't understand what it really means.


Could You Live On Social Security? | ZeroHedge

 

Unfortunately the tragedy is that many will wait till the last minute or until it's too late and this is where educating ones self on economics is of such vital importance .
Difficult times ahead await those who are not prepared .
The replies on this piece were an eye opener as to some peoples mental state.

Thanks for posting this my friend.

Ally

 

Jungle,
Do you really think there are people out there under the age of 50(probably older but I'll be conservative) who think they can live on it or are even planning on doing so? I'm not even planning that SS will be available to me by the time I reach that age - never mind whether it'll be enough.

I'm not talking about those who have life circumstances that result in being forced to to live on SS or continue work well past "normal" retirement age.

In this current age of IRAs, 401Ks, etc. there's no excuse for not planning for retirement. If you can't fund such plans, then I contend you fall into the group I mentioned above and you have no choice.

We all get a yearly SS statement that lays out the ugly truth, so there shouldn't be any surprises. The only thing the government might be able to do better is stop pretending that SS is anything other than a meager supplement to either continued employment or a real retirement plan consisting of IRAs, 401Ks and other pensions.

If someone gets to SS collection age and actually had that as their plan A, they deserve what they get (or don't get as the case may be).

 

You are quite correct, the article merely points out that a large number of people are going to have to rely on SS. It does not make any qualitative judgement on their lives or the program.

Most of us understand that if any firm tried to sell such a program in the private sector they would be jailed.

 

As I look into my crystal ball I foresee the inevitable cuts in payments .
I'm just saying so plan accordingly.

 

I'm no longer considering SS as a source of retirement income. If it is still there by the time I'm eligible, it will be a bonus.

 

If its around, it can cover my real estate taxes and maybe fun money to do dinner with the wife.

Live on it? No.

 

The graphic is a bit simplistic, for example breaking down average rents by state when average rents can vary dramatically just from one side of a town to the other.

Can you live the way you are "accustomed to" on social security alone? Certainly not. Can you *live* on social security alone? Certainly you can. Many millions of people in the US live on less. I personally know several people who live on incomes of only around $5000 per year. The program was never intended as a full pension. It is intended to keep people from starving to death on the streets.

 

Fidelity: 401(k) Balances Grew 12% to Record High in 2012

The amounts that investors have saved through their 401(k)s vary widely depending on a participant's age. Fidelity said the average year-end balances were $143,300 for participants 55 and older and not yet retired; $120,400 for baby boomers born from 1946 to 1964; $59,100 for Generation Xers born from 1965 to 1978; and $15,400 for those in Generation Y, born from 1979 to 1991.

Looks like folks are planning on frugal living from their 401k balances.

 

And it was never meant to be that way.