A recent poll, conducted by the Associated Press and the
LifeGoesStrong.com 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
Social Security will be their primary source of income in
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
by the program's financial challenges, barring any major
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.