文章基本信息

标题：Social Security won't be enough
作者：KENT S. COLLINS los angeles times
期刊名称：The Topeka Capital-Journal
印刷版ISSN：1067-1994
出版年度：1999
卷号：Oct 13, 1999
出版社：Morris Multimedia, Inc.

Social Security won't be enough

KENT S. COLLINS los angeles times

By KENT S. COLLINS

Q.Is Social Security going to amount to much more than a hill of beans by the time I retire in 10 years? --- J.Z.

A. Yes. You won't be able to live without it. But you won't be able to live on it, either. It won't be enough. You will need a lot more income than is provided by Social Security.

First, consider that to get full benefits, you will have to work longer than recent retirees. In your age bracket, you won't be eligible for 100 percent benefits until age 66. As part of the Social Security rescue effort of several years ago, the formula has changed. Taking benefits a year earlier --- at age 65 --- might mean a reduction of $50 to $100 per month.

Second, keep in mind Social Security today provides less than half of the average retiree's income. Social Security benefits are indexed to inflation, so that proportion may not change much over the next decade. But you will still need to supplement Social Security with savings and pension in a big way. How big? In another decade, it might take $100,000 to buy what $70,000 buys today, depending on the rate of inflation.

Maybe you will get big promotions and big pay hikes during the next 10 years, which will boost your Social Security hill of beans. Or maybe you will get demoted or switch to part-time work that will make your Social Security hill of beans not much more than a hill of beans.

Retirees generally report they live well on about 70 percent of their pre-retirement income. If Social Security is going to provide less than half of that, where will the rest come from? Halfway through your working career is the time for most people to figure answers to that question.

You can begin to figure your retirement potential by getting an estimate of your Social Security benefits. Telephone (800) 772-1213 and request that form SSA-7004 be sent to you. From there, you can consider pension and savings needed to make the golden years golden.

Los Angeles Times Syndicate