Social Security Benefits May Not Provide Enough Income in Retirement

June 15, 2013

In talking with many people that are preparing for Retirement, the statement that comes up most is whether or not Social Security will be there when people need it. So I thought I would share some Myths and Facts about Social Security over the next couple of weeks. Read on to learn the first, and probably most important, myth about Social Security benefits.

Social Security Benefits

MYTH #1: Social Security benefits will provide most of the income you need in retirement.

TRUTH: It’s likely that Social Security will provide a smaller portion of retirement income than you expect.

There’s no doubt about it–Social Security benefits are an important source of retirement income for most Americans. According to the Social Security Administration, more than 90% of individuals age 65 and older receive Social Security benefits.

Although you probably do not want to turn down Social Security benefits, it may be unwise to rely too heavily on them. The federal government is having a difficult time agreeing on how to keep Social Security solvent in the future, and because there are so many issues regarding the long-term viability of the program, some big changes will likely be made to it. The younger and wealthier you are, the more likely these changes will affect you.

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But whether retirement is years away or just around the corner, keep in mind that Social Security was never meant to be the sole source of income for retirees. As President Dwight D. Eisenhower said, “The system is not intended as a substitute for private savings, pension plans, and insurance protection. It is, rather, intended as the foundation upon which these other forms of protection can be soundly built.”

No matter what the future holds for Social Security, you should focus on saving as much for retirement as possible. There are many good ways to save for your retirement, but make sure you use investments that meet your goals and risk tolerance. When combined with your future Social Security benefits, your retirement savings and pension benefits can help ensure that you’ll have enough income to see you through retirement.

For most Americans, Social Security is an important part of your retirement planning, so make sure you understand the difference between myth and fact. There are also many ways to maximize your Social Security benefits.

So make sure you have your financial affairs in order and a good way to start this process would be to contact John Bearss by e-mail at lifetime@donet.com or call him toll free at (888) 914-9909.

Until next week!

Have a retirement planning question for John Bearss? Send it to him here.

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Disclaimer: Investing involves risk. Always do your own due diligence and consult a trusted financial professional before making any investing or financial decisions. John Bearss is a retirement specialist. He is also a registered representative of and offers securities through SICOR Securities, Inc., Member FINRA, MSRB, SIPC, 6500 Poe Avenue, Suite 105, Dayton, OH 45414 | (937) 890.3101. Neither SICOR Securities, Inc., Lifetime Decisions Management nor their representatives provide legal or tax advice. Please consult your CPA or qualified tax advisor before making any decisions. Lifetime Decisions Management, Inc. and SICOR Securities, Inc. are not affiliated.

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