Retirement

In: Business and Management

Submitted By p7790
Words 912
Pages 4
RETIREMENT Everyone may ask once in his lifetime, “What does one need to have a comfortable retirement?” When people are young, they think they have many years ahead before planning for retirement. People look forward to retiring, maybe moving to another state, going on vacation, or simply just enjoying the golden years. While Social Security was not intended to be a retirement plan, but rather a retirement supplement or safety net, many American retirees have relied heavily on this monthly benefit to sustain him. Many Americans were/are not fortunate enough to have worked for a company that provided an ample pension or any pension plan. The lower and middle classes in the United States, out of necessity, have survived in their post working years on Social Security. Even though that may not have been the intent of the program that is the hard reality. Middle class and upper class individuals have had the luxury of acquiring a little extra money to set aside or to invest for their retirement. Most Americans expect Social Security to provide for them in their retirement years. However, as many people know from reading, listening, or watching the news, Social Security is in financial distress. Congress is discussing changes that need to be made for Social Security to survive even as a reduced entitlement. Therefore, Social Security may no longer be relied on as sufficient for even the barest necessities of life. Therefore people should consider alternatives for future financial security including individual, employer retirement plans, or investment such as stocks or bonds. However, before discussing alternatives ways to provide for the future, one needs to understand how Social Security currently works. Social Security accumulates credits based on earnings. One has to have worked for 10 years to earn 40 credits, the minimum required to qualify to…...

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