Justify Social Security ... Don't Save For Retirement

It is a common question when investors review their retirement planshould we include social security benefits into our retirement income projections? It seems the closer an investor is to retirement, the more likely he/she will include social security benefits into the analysis. Younger investors, however, may feel compelled to omit such benefits. They must then become mavericks on the retirement front. The choice is yours, but before you decide the influence of social security on your future, remember the following points: When Franklin D. Roosevelt signed the social security act in , he stated that social security gives some protection to American families. One reoccurring theme of his statement focused on assistance, not % protection. In the Presidents words, the law will flatten out the peaks and valleys of deflation and of inflation (source: http://www.ssa.gov). For many, the Social Security Administration has raised the age of full retirement from to adopt a more stringent schedule. This may be an addition of a couple of months or a couple of years. The administration justifies the increases due to longer life expectancies and general healthier life styles. For example, those born after , your full retirement age is . Going forward, we should ask ourselves what other changes will be made to social security? If you would like a complete schedule of retirement ages for full benefits, I recommend you visit Social Security's website at http://www.ssa.gov. An opinion adopted by many is to consider social security in part the closer you are to retirement. For example, if you are sixty years of age and plan on full retirement in five years, you should consider an analysis based on your current projected benefits. Even with the proposed reform plans, preservation of benefits is a priority for eligible citizens age - and older. If however you are thirty, it may be better for you to omit such projections. The result will be overfunded personal savings. Thus social security will be an added benefit and not the benefit. Consider the troubling issues of the OASDI Trustees Report: future scheduled benefits for today's young workers could be reduced by % or more if amendments to the current plan are not adopted. Young workers should take note of this report. Do not rely on social security and concentrate on personal savings. In conclusion, you have a risky optionthere is only one way to justify social security, don't save for retirement. If this is your chosen route, be prepared for difficult times ahead.