Social Security Benefits
Americans have worked hard for centuries and always have had worries about how will they support themselves when they retire. To help aid retirees, in August 1935, the government established the Social Security Trust fund for retired workers, unemployment insurance, benefits for victims of industrial accidents, the blind, aid for dependent mothers and children, and the physically handicapped(Historical Background and Development of Social Security, 2010). However, the Social Security system is facing serious financial problems due because of a lack of jobs, high unemployment, and layoff rates. So there is no guarantee that Social Security benefits will be available for them when they retire, and therefore
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Many Americans are relying on Social Security benefits to be the bulk of their retirement income, but with an estimated 76% payout of Social Security benefits, it should only be a component of retirement funds. Experts recommend that we save about 70% of our pre-retirement income or 90% or more for lower earners, to maintain the standard of living we are accustomed to once we retire (United States Department of Labor, n.d.). Because Social Security only pays retirees an average of 40% of our pre-retirement income, it is important to have other sources of income available (United States Department of Labor, n.d.). To save that extra 30-50 percent, Americans need to research all available avenues of saving and investing for their future. Many jobs offer 401K savings plans, and if so individuals should contribute all they can to it. Besides job related retirement savings plans, Americans should consider an Individual Retirement Account (IRA), which also gains tax advantages, and seek out investment opportunities. Because only 43% of Americans have calculated how much, they need to save for retirement, it is important for all American workers to speak with employers, banks and financial advisor to ensure there monetary future will be secure (United States Department of Labor, n.d.).
Until recently the government took in more revenue than before to fund Social Security. The extra revenue created a trust fund that supplied by the