Essay on Retirement Planning

1225 Words5 Pages
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…show more content…
With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.
Saving small sums of wages during a length of time will contribute more money to the financial plans needed after retirement. A main step of saving for retirement is to live only with what is needed throughout the time a person is in his or her younger years. Then as a person grows in age, education, and financial income, increase the savings and maintain the same level of living without adding unnecessary spending. This does not mean to live so tight that there is no room to take trips or have fun times, but it does mean monitoring what is affordable and sticking to the retirement plan. If a person who makes around $25,000 a year were to
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