Most of you have heard and all of you know that Social Security should not be your only nest egg. First of all, as have been covered yesterday, Social Security may not be around for everyone, definitely not in its current form.
That being said, it should have always been understood that Social Security is intended to supplement, not replace, the total financial resources needed by a worker at retirement. Social Security retirement benefits replace about 40 percent of an average wage earner’s income, less if the benefit is permanently reduced due to early retirement. The belief is that at retirement age your financial needs are reduced. The mortgage on your home is paid off or you downsize to a smaller home. Your children have left home and are independent or possibly providing assistance to you. You have no long term care health needs.
Ok, is this the reality for most retirees? How many are still paying a high mortgage? How many still have kids at home, grown or otherwise? Many financial planners suggest that 70–80 percent of an average wage earner’s income will be needed for a comfortable retirement. Our changed reality demands more advance planning for retirement than most people have realized.
Let us help you plan. Visit us at http://www.ythlaw.com/ for a free phone consultation. Feel free anytime to leave a comment.
That being said, it should have always been understood that Social Security is intended to supplement, not replace, the total financial resources needed by a worker at retirement. Social Security retirement benefits replace about 40 percent of an average wage earner’s income, less if the benefit is permanently reduced due to early retirement. The belief is that at retirement age your financial needs are reduced. The mortgage on your home is paid off or you downsize to a smaller home. Your children have left home and are independent or possibly providing assistance to you. You have no long term care health needs.
Ok, is this the reality for most retirees? How many are still paying a high mortgage? How many still have kids at home, grown or otherwise? Many financial planners suggest that 70–80 percent of an average wage earner’s income will be needed for a comfortable retirement. Our changed reality demands more advance planning for retirement than most people have realized.
Let us help you plan. Visit us at http://www.ythlaw.com/ for a free phone consultation. Feel free anytime to leave a comment.
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