Retirement Planning Is Important!

And No, Social Security Is not The way to go!

A retirement plan or a pension plan is a plan for setting aside money to be spent after we Americans stop working, which is usually in the last part of our lives. Social Security is a United States federal program it offers help with retirement. It can also help with other things that we as Americans may need help with, such as disability benefits or death benefits. President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935. Social Security is one of the governments largest programs. Every year this program gives out hundreds of billions of dollars, which is interesting due to that fact our government is in extreme debt. In fact the purpose of the Social Security Act was never meant be used as Americans sole retirement plan. (Women and Money, By Suze Orman). This one reason why many Americans agree we need to have a plan of our own set up. However, there still are many Americans that believe Social Security is all they need when it comes to having a retirement plan. This Act was designed only to help out Americans that are facing hardships not to support every American (Women and Money, By Suse Orman). That is why Americans need to know Social Security in any form is not guaranteed to us Americans. I have even looked for and found no evidence that supports that it is guaranteed. However, I did found evidence that supports that it is not guaranteed to us Americans. With that said the fact is that we cannot work forever, and when we stop working we will still need income. That is why planning for retirement is a necessity for all Americans Social Security is not something we can count on when it comes to retirement.

The point is, it is Important to set up retirement plan. Social Security is not safe to count on. Since it was created the majority of Americans relied on and used it for their sole retirement. That contributed to some of the problems arising in the program. The program is not flawless or even secured enough to prove it will exist in the future. Social Security will not pay out enough money to cover all of our needs. So be wise, you can do that by securing your future and setting up your own retirement plan. Counting solely on Social Security to retire is a great way of putting you future in danger. Would you not loan someone money if you knew they had a drug addiction. That is a negative thing about someone that would make you not want to chance borrowing them money. There are negative many things about Social Security, so why chance your future if knowing that? Social Security is simply not something we can count on when it comes to retirement.

Social Security is not full proof meaning not guaranteed, nothing says that it is, and nothing in the Social Security Act Law that states otherwise. If it was, we Americans would have contracts with the US Government to prove it. There are even documented court cases that prove it is not guarantee due to the lack of contract between Americans and our Government. Social Security is a system with flaws. So with that being said, you should be aware that there are many things that can make the system completely fail. One big thing that would make it fail is a baby boom. This event can eventually make the system fail and will make it fail if this does happens. This is one scenario that explains why and how Social

Security can fail. Too many people born within say 5 years of each other will eventually make it so that there are too many people retiring at once. This can and will eventually cause for the Social Security system to fail. Do to not having enough funds available in the system to pay the retirees. That means it can bankrupt the program and you will get nothing. Which will cause you could be in serious financial trouble which can lead to things such as homelessness.

Former President Bush made a lengthy discussion about social security in 2005 at the State of the Union Address. This was at the time when our economy started to go under, which is why the former President had cause for concerns on the subject of Social Security and retirement 6 years ago. The former President discussed that there are many pressures that will eventually going to push the Social Security system to future bankruptcy (as cited in The Washington Post, 2005). The former President stated that (as we fix Social Security, we also have the responsibility to make the system better for younger workers (as cited in The Washington Post, 2005). Former President Bush then went on by stating that the best way to reach that goal is for us to set up our own individual retirement accounts. The former President argued that this approach, would quote offers younger workers a better deal (as cited in The Washington Post, 2005). When the former President said this, he was trying to get us Americans to plan our own retirement because he knew the system will fail do to bankruptcy. Especially if Americans continue to misuse the Social Security program by depending solely on it for retirement! He then explained that the rate of return for a personal

retirement plan is higher, than the rate of return from Social Security would ever be. He mentioned that the accumulation can even be passed on to children or even grandchildren in which it cannot with Social Security (as cited in The Washington Post, 2005). The former President then said that best of all the money in those accounts are yours and the government cannot ever take it away like they can with Social Security (as cited in The Washington Post, 2005). Former President Bush tried to encourage us Americans to plan our own retirement and reap the rewards, with Social Security as a backup plan. That is what Social Security was meant to be used for in the first place.

The government has to make frequent changes to the systems rules and regulations to keep it in working order. When it was first created, the average life expectancy was sixty-two years old. The creators of Social Security expected and counted on few Americans ever living to age sixty-two. Todays average life expectancy goes well into the 80s. This is a big mistake that the creators made and the U.S. Government had to make changes in the rules. The changes they made pertained to Americans birth years, and when you can start receiving the benefits. This has not even fully fixed the issues Social Security has. Every year, a new issue arises even more issues now with a weak economy, and the government waste deep in debt. One thing is certain with a weak economy people will rapidly lose their jobs. If that should happen, it means there will be an extremely small amount of money being put into the Social Security program.

With the recession going on and our troubled economy it is already happening to America right now. It will eventually affect the future of Social Security.

Social Security will have to constantly make changes and new rules, until they run out of options. Eventually it will fail completely and become nonexistent for anyone to use. That makes Social Security an unreliable system that is not full proof or guaranteed in any way, and we need to stop using it like it is.

In conclusion Social Security has a purpose and is good for its own reasons; however, it is not meant for every Americans retirement plan. It simply is not guaranteed, not reliable and wise to depend solely on. Ask yourself if you want a secured future when youre done working? Then remind yourself it simply is not the safe way to go when it comes to having a safe and secure future after you stop working. The point is planning for retirement is a necessity for all Americans and Social Security is not something we can or should count on when it comes to retirement. By Nickie Chaplin

References

Title: In Weak Economy, more people are filing early for Social Security By: Matt Sedensky, which has some text of quotes in President Bushs 2005 State of the Union Address Date: Monday, August 9, 2010 Publication: The Washington Post on the Internet Site: http://www.washingtonpost.com

Title: Why the 2005 Social Security initiative failed and what it means for the future. By: William A. Galston, Senior Fellow, Governance Studies Date: September 21, 2007 / Monday, August 22, 2011 Publication: Brookings/papers/2007/0921governance_galston.apx Site: http://www.brookings.edu/

Title: Social Security Retirement By: The Government/ official web page for S.S. Date: January 2010 Publication: SSA publication No. 0510035, January 2010, ICN 457500 Site: http://www.ssa.gov/retirement/

Title: Real world economics, How a Depression works By: Jason Porterfield

Date: 2010 Publication: Rosen Publishing Group Inc. 29 East 21st Street New York, NY 10010 Page: 64

Title: Women and Money, owning the power to control your destiny By: Suze Orman Date: 2007 Publication: Published By Spiegel and Grua Pages:16, 29,82, 118-121,145,210

Title: The Nine Steps to Financial Freedom By: Suze Orman Date: 1997, 2000 Publication: Three Rivers Press, New York, NY. A trademark of Random House Inc.; Originally published in hard cover: by Crown Publishers in 1997. Page: 129, 137-171, 146-149,

Title: Dont Count on Social Security By: Chuck Saletta Date: July 19, 2011 Publications: iShares Russell 2000 index, The Motley Fool Newsletters Services Site: http://www.fool.com/retirement/general/2011/07/19/dont-count-on-socialsecurity.aspx

Title: Social Securitys Sham Guarantee By: Michael D. Tanner Date: May 29, 2005 Publication: Cato Institute, 1000 Massachusetts Avenue, N.W. Washington D.C. 20001-5403 Site: http://www.cato.org/pub_display.php?pub_id=3785

Title: Text of President Bushs 2005 State of the Union Address By: Quoted by President Bush Date: February 2, 2005 Publication: Courtesy FDCH E-Media / 2005: The Washington Post Company Site: http://www.washingtonpost.com/wpsrv/politics/transcripts/bushtext_020205.html

Title: Social Security History, Supreme Court Case: Flemming vs. Nestor By: Documented text of court case

Publication: Case Name Flemming V. Nestor 363 U.S. 603, No.54 Argued 02/24/1960-decided 06/20/1960. 169 F. SUPP. 922, Revised. On the Social Security website. Date: Website last reviewed or modified Tuesday Sept. 06, 2011. Case dates: Argued 02/24/1960-decided 06/20/1960
Site: http://www.ssa.gov/history/nestor.html