Social Security And Baby Boomer Retirement

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For most members of the Baby Boomer generation, gathering enough funds for retirement isn't going to be easy, especially as there are many disadvantages previous generations didn't have to worry about - this includes the unstable Social Security system.

The bleak future of the country's most popular retirement plan is just one of the problems that further complicates how this generation approaches their golden years. Social Security benefits now compose a smaller portion of the average Boomer's retirement income when compared to that of older generations. These smaller benefits, coupled with underperforming investments, inflation, and longer life spans are threatening to erode nest eggs during retirement.

For example, a couple that retired 30 years ago on a combined income of $25,000 may have had joint benefits of $2,000 monthly. This means the received roughly the same amount in benefits as they used to get paid at work. Today, a couple that makes anywhere within $60,000 to $90,000 annually may only retire and earn combined retirement benefits of $30,000 yearly - about 1/3 to 1/2 of their pre-retirement income. This illustrates how Social Security can be a huge concern for those retiring soon.

If you're still several years away from normal retirement age, or have postponed retiring for decade or so, you can cope with the future shortfall of funds by using retirement plans and maximizing them. These plans can help boost your nest egg because they work on defined contributions, which mean that if you can spare more, you can get more when you finally do retire.

Especially for those who are relatively near retirement, strict budgeting can play a large part in building retirement security. Keep tabs of all expenses, and keep big ones to a minimum, and most of all, try not to withdraw from your retirement accounts until these reach maturity. Lastly, retirement income for Baby Boomers (and other generations as well) shouldn't depend mainly on Social Security - there are many tools that can help you save money and stay on the path to a comfortable, well-funded retirement.

About the Author:
Carina Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group gives Baby Boomers and other generations of seniors a wide range of investment options. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com.



Article Originally Published On: http://www.articlesnatch.com


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