Depending on Social Security?

By Erin Klingbeil,

Shutterstock photo

A recent poll, conducted by the Associated Press and the lifestyle website for Boomers, found that 44% of Americans between 45 and 65 years of age aren't confident they'll have the resources to live comfortably in retirement.

Despite the warnings from financial advisors and the Social Security Administration , nearly two-thirds of Baby Boomers surveyed said Social Security will be either an "extremely" or "very" important source of income when they retire. Among Boomer households with incomes of less than $50,000 a year, only 35% are confident they'll have their ducks in a row in time for retirement and the vast majority of those folks acknowledge that Social Security will be their primary source of income in retirement .

In the Summary of the 2011 Annual Reports, the SSA said that "the financial conditions of the Social Security and Medicare programs remain challenging." Additionally, they reported that, "After 2022, trust fund assets will be redeemed in amounts that exceed interest earnings until trust fund reserves are exhausted in 2036, one year earlier than was projected last year."

The average 65-year-old couple can expect to spend about 30 years in retirement. And if the latest report from the SSA is any indication of future expectations, it's safe to assume that many Boomers will be affected somehow by the program's financial challenges, barring any major legislative changes.

This is not likely a pressing issue for those retiring today; however it is concerning for those who plan to retire in the next 10 to 15 years and have saved little to their name. It's time to kick savings into high gear and get serious about providing for your future self. Social Security is not the crux of your retirement, and it was never meant to be!

It is even more of a wake up call for the next generation to take this as a valuable lesson and begin practicing smart financial habits. Here's hoping that polls and surveys 40 years from now tell a much more encouraging story.

The intent of this article is to help expand your financial education. Although the information included may be relevant to your particular situation, it is not meant to be personalized advice. When it comes to investing, insurance and financial planning, it is important to speak to a professional and get advice that is tailored to your unique, individual situation. All investments involve risk including possible loss of principal. Investment objectives, risks and other information are contained in the Snider Investment Method Owner's Manual; read and consider them carefully before investing. More information can be found on our website or by calling 1-888-6SNIDER. Past performance is not indicative of future results.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance Retirement
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