Our modern idea of retirement began after World War II when companies started offering pensions to employees and Social Security was implemented. In the 1970s, when it became apparent that those sources may not be enough, the individual 401(k) investment option became popular. Today, Social Security is in jeopardy and companies are moving quickly away from pension plans. It is up to the individual to save for retirement, however, with many families living paycheck to paycheck or being impoverished, it is impossible to expect that everyone will be able to save enough. One solution to this problem would be to double Social Security contributions on employers and employees, then keep the funds in an account that the employee can control but not withdraw from until retirement.
Key Takeaways:
- There used to be at least three ways to build retirement: Personal savings, Social Security and Pensions. Pensions are gone, Social Security is dwindling and what savings?
- Social security benefits were never meant to be the sole support of the retired. It was a program to help those in dire need.
- By doubling are percentage paid in we have a chance of having enough money. take the extra but allow individuals input in saving it into an account in their name.
“Social Security, the first leg, is projected to have a reduction in benefits by 2034, if no changes are made today.”
