Young people benefitting from Social Security advice
Posted on:9/8/2009
Written By: Chris Robideaux
| Many young workers are still unconvinced that adequate retirement planning is necessary at their age. "I'm not retirement age, and I'm not disabled, so why should I be thinking about Social Security?"
This response comes from a 32-year old man when asked about his future. |
Many young workers are still unconvinced that adequate retirement planning is necessary at their age. "I'm not retirement age, and I'm not disabled, so why should I be thinking about Social Security?"
This response comes from a 32-year old man when asked about his future. He and most people under age 35 just do not think about Social Security. However, financial planning is not just for people nearing retirement. In fact, it's a good idea to begin planning for a comfortable and secure retirement when you're young.
That's why Social Security has a new financial planning tool especially for the 25 to 35 crowd. It's a special mailer with information about Social Security, savings and other items of interest to young workers. If you're between the ages of 25 and 35 and you work and pay Social Security taxes, you'll get this automatically with your next Social Security statement.
Social Security is the foundation for a secure retirement but never was intended to be your only source of income when you retire.
While Social Security replaces about 40 percent of the average worker's pre-retirement earnings, most financial advisors say that you will need 70 percent or more of pre-retirement earnings to live comfortably. Even with a pension, you will still need to save. If you will not have a private pension, you will need to save more — and start saving sooner.
Today's young workers can expect to spend 20, 30 or even more years in retirement, so saving is critical.
Want to start planning your future? There are some easy ways to do so. Take a look at Your Social Security statement, which you'll receive in the mail about two to three months before your birthday, as well as the helpful two-page insert tailored specifically to workers ages 25 to 35.
Pay close attention to the information provided, including tips on saving, getting your employer to help with matching contributions to retirement plans, and how much of a difference beginning to save early can make. There's even a graph showing the significant difference saving over time can make, even if it's just $25 or $50 a week.