One of the big stories in the elder law community these days involves the fact that the baby boomer generation is reaching retirement age. No less than 10,000 people are applying for Social Security for the first time every day, and this volume of applicants is expected to continue for the next 20 years.
The Social Security Administration states that 64% of people who receive a Social Security check rely on it as their primary source of income. To drill down deeper, 33% of recipients say that their Social Security benefit comprises 90% or more of their total income. With this in mind that check better be a pretty big one, but unfortunately this is not the case. The average monthly Social Security benefit that is paid out equals $1072.
As if the above statistics were not sobering enough, we are all aware of the ongoing budget debates that are taking place in Washington. At this point both parties seem to be expressing a willingness to cut Social Security and Medicare. Those receiving Social Security have not received an increase in two years and running, and given the mood in Washington it seems as though this streak may continue.
So when you look at the facts Social Security is not going to be able to provide you with a very comfortable retirement as it stands now and it is logical to assume that it may be of less help in the future. The wise way to respond is to recognize the reality as it is and devise a proactive plan that will allow you to achieve your retirement goals.
- When and Why to Update Your Estate Plan - December 4, 2023
- Debunking Common Estate Planning Myths - December 2, 2023
- Why ‘I’m Too Young for Estate Planning’ is a Fallacy - November 30, 2023
