Social Security Alone Will Not Support Your Retirement

May 30, 2012 12:00 AM
Social Security Alone Will Not Support Your Retirement
" BOSTON (CBS) – The reality is Social Security was designed to replace about 40% of your current paycheck and less if you are a high wage earner. Many experts think that number will drop to about 30% by 2030 adjusting for higher Medicare premiums, taxation of benefits and increasing retirement age.

Currently for 26% of retirees Social Security is their only source of income. Social Security was never meant to be your only source of income in retirement. Think about this, the average monthly benefit for a current retiree is $1,229. It is very difficult to survive on that in Massachusetts. And yet many do. Over 13 million seniors survive on less than $22,000 a year.

The maximum benefit for someone who has reached their full benefit age, which is 66 for this year, is $2,513. To get the maximum benefit you would have had to earn the maximum Social Security wage for at least 35 of your working years. That amount for this year is $110,100.

Social Security benefits are indexed for inflation but there were 2 years, 2010 & 2011, where there was no increase in benefits because inflation was so low "

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