I saw this gem I thought I would pass along. Read the comments and then reflect on the facts below. You might also want to read many of the comments on this blog in the Social Security category.
Social Security is the most important and most misunderstood of all government programs and the misleading rhetoric from politicians doesn’t help. In addition, the over 65 population has an increased sense of entitlement (again reinforced by political rhetoric) that is unrealistic and unfair to younger generations.
What’s the answer? Really fix the system and don’t reach retirement age dependent on Social Security for a significant portion of your income.
Social Security benefits will be a major source of income for millions of folks after they retire. That’s why it was so alarming when an AARP/Financial Planning Association survey found that Americans were far from savvy when it came to understanding basic Social Security benefits.
However, some of the comments from CNBC readers didn’t seem to grasp the gravity of the situation.
Let me share a few: “Can’t convince me not to take it early. Will be good gambling money.”
“There continues to be articles indicating how unprepared most Americans are or will be for retirement. This is ridiculous. Americans are a resilient and creative people. Most will be just fine in retirement and will adjust and figure out how to manage retirement needs.”
“Social Security lacks smarts. It was an idiotic plan that was never financially sound from day one. A tax and spend fiasco that is a major burden, not a benefit for young people. They don’t need SS smarts they need freedom from the Ponzi scheme.”
If these comments weren’t so sad, they would be funny.
Interestingly, you can’t solve a problem until you admit you have one. This severe lack of understanding or downright ignorance about the Social Security benefit rules will keep many folks from having a secure, comfortable retirement.
Senior Editor at Large
- Social Security benefits represent about 38% of the income of the elderly.
- Among elderly Social Security beneficiaries, 52% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security.
- Among elderly Social Security beneficiaries, 22% of married couples and about 47% of unmarried persons rely on Social Security for 90% or more of their income.