Economic Influences - Question 49

Do you think Social Security will be around when I am ready to retire? I am 29 years old.

A recent survey asked Americans in their 20s - your age group - about their attitude and opinion of Social Security. More of them believed in the existence of UFOs than that they would someday receive Social Security benefits. Social Security will survive - but benefits will probably decrease as older eligibility ages are established. The normal retirement age of 65 years will begin to change in the year 2000. This will affect those born after 1937 and the eligibility age will gradually increase to 67.

You must take responsibility for your retirement by realizing Social Security will provide only a base level of income during your retirement years. It was never intended to function as a retirement plan but only as a supplement. You need to shoulder your retirement needs by starting to invest in tax deferred investments such as IRAs, 401(k) plan, SEPs, and Keogh when you are young so that time and compound interest will make your retirement nest egg multiply. Never before has a comfortable retirement depended more on personal financial planning and disciplined savings.