How Secured is Social Security?
People won’t be working all their lives; won’t be earning money for all time. So what happens if the salary stops from flowing? – Nothing crucial, if backed by a Social Security.
People who benefit from social security are not only those who have retired from their jobs. Social security also provides a dependable monthly income for disabled workers as well as survivors or dependent family members of a deceased wage earner.
Without social security, up to half of the total senior citizens population would be living in poverty. On the other hand, social security has been helping to improve the social condition of about two-thirds of American retirees and other beneficiaries since 1935. For some it is the main source of income complementing their other sources of income; while others find it the only source of living. Yet how is it really possible? How does it work, and is it really working?
Some people comment that there are a lot of reasons why people should be dubious, even hateful of social security. First, there are a few cases when people never receive a single penny from social security. Those who have social securities hardly get back what they have put in if ever they die before they receive their supposed retirement benefits; more even if they don’t have qualified dependents to bequeath the money for. Also their working adult children could not receive the benefit since the social security is intentionally meant as income after the beneficiary’s retirement. Those who pay thousands of dollars each year for their social security taxes soon find that after they retire, the social security would not be enough pay for all their living expenses. The average benefit that social security provides is about $11,000 annually. It seems never to have been enough to provide the retirement that people want. Hence it would have been better off investing that money on their own perhaps through a savings account.
On the other hand, some people don’t know how to invest money for future use. Perhaps it remains a smart move to save for retirement and pay for insurance through social security. Again as already mentioned, social security, for some, is the main source of income complementing their other sources of income while others find it the only source of living. Also, social security is more than just about retirement. It might still provide income for the dependent family (if there is) if ever a person dies or become disabled. In the end it’s all about knowing where your current retirement or future condition will lead you and your family. After all, the quality of your future security will be determined by how much you save now.