| Social Security Wake-up
Beginning October 1st 125 million future retirees started receiving statements from the Social Security Administration. These statements tell them how much they have paid in Social Security and Medicare taxes, and what their future benefits will be. For many Americans, this will be a real wake-up call.
Social Security replaces less than 50 percent of current income for most of us who are "middle-class" Americans. This means that you need another source of retirement income if you don't want your standard of living to decline drastically. For some workers, their pension will help make up the bulk of the income shortage. However, almost everyone needs at least one additional source of retirement savings.
How much will you need to live on in retirement? Is your current savings rate sufficient? You can wait until you retire to find out (but we wouldn't recommend it), or you can plan ahead. The statement from Social Security is an opportunity for you to take stock in your future. The next step is to have a financial plan prepared which addresses your future.
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