COLORADO SPRINGS – It’s a question many adults ask themselves: will Social Security funding be around when I retire?
Carl Carlson, CEO of Carlson Financial, said while he believes it won’t run out you shouldn’t depend on those extra funds for your retirement.
For those who have already retired or are getting close, your Social Security funds are pretty much set. However, for younger people in their 30s, 40s, even 50s, Carlson said, “If you’re in that age bracket then don’t plan on having Social Security be a major part of your retirement.”
He said a few years ago the amount being paid into Social Security was not as high as the amount being taken out. Now, it’s eating into the reserves.
“What they say is in the next 15 or 16 years those reserves will be gone and they’ll only be able to pay about 75 to 80 percent of what’s been promised.”
Bottom line – future retirees shouldn’t rely on these payments as much as their predecessors have. Their focus now – saving whatever money they can.
“If Social Security gets pushed out a lot longer or it’s less or anything happens, you’ve got the savings set up for your retirement to be able to fund it without heavily relying on Social Security.”
Carlson said Social Security was never meant to be the biggest part of your retirement fund. It’s purpose – to help with about 40 percent of the average worker’s wage.
Carlson Financial is a sponsor of Financial Focus.