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 a lazier and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; the money is used for older generations that will file for these benefits before the younger people working in the early 21 century even receive the chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved with the personal goals of an individual can reward greatly. Taking the time to research and
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As a result of these changes, the beneficiaries of Social Security in America doubled in size from 1970 to 2010, raising the payments made from $31,863,000 to over $600,000,000 in just 40 years; however, the amount of money put into the Social Security Reserve did not double in size (Dewitt, 2010). With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support the younger generation when it is time to retire. Depending on Social Security to support a younger 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, there is no reason a younger person should depend on it alone for retirement.
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