We work hard in Atlanta to provide ourselves a suitable way of life. Because we work hard, and because there is so much to do around in the Atlanta Metro Area, who wants to slow the pace down? In fact, most people that retire, tend to speed up a bid. The saying “I can’t wait to retire and relax”, is not what is the actual facts.
Before discussing how to plan a successful retirement, we need to understand why we need to take our retirement into our own hands in the first place. This may seem like a trivial question, but you might be surprised to learn that the key components of retirement planning run contrary to popular belief about the best way to save for the future. Further, proper implementation of those key components is essential in guaranteeing a financially secure retirement. This involves looking at each possible source of retirement income.
Uncertainty of Social Security and Pension Benefits
First off, we need to be up front about the prospects of government-sponsored retirement – they’re not very good. As we all know, the developed world’s populations are continuing to age, with fewer and fewer working-age people remaining to contribute to social security systems.
For instance, consider that according to a 2005 study by Stephen C. Goss, chief actuary of the Social Security Administration, the ratio of covered workers versus the number of beneficiaries under the U.S.Social Security program has been reduced significantly over the years. In 1940, there were 35.3 million workers paying into the system, with only 222,000 beneficiaries – a ratio of 159 to 1. In 2003, the number of workers increased to 154.3 million, with 46.8 million beneficiaries – a ratio of 3.3 to 1.
This “double-whammy” effect holds the potential to put significant strains on the system and could leave governments with no other viable option but to reduce social security benefits or suspend them altogether for all but the poorest of the poor.
While the failure of a social security system may not occur, planning your retirement on funds you don’t control is certainly not the best option. Even with that risk aside, it’s important to realize that social security benefits will never provide you with a financially adequate retirement. By definition, social security programs are intended to provide a basic safety net – a bare minimum standard of living for your old age.
Without your own savings to add to the mix, you’ll find it difficult, if not impossible, to enjoy much beyond the minimum standard of living social security provides. This situation can quickly become alarming if your health takes a turn for the worse.
As we know, life tends to throw us a curve ball every now and then. Unforeseen illnesses, the financial needs of your dependents and the uncertainty of social security and pension systems are but a few of the factors at play.
Regardless of the challenges faced living in the Atlanta Area, having a retirement plan will do wonders for helping you cope. Financial hiccups can be smoothed out over the long term, provided that they don’t derail your financial plan in the short term, and there is much to be said for the peace of mind that a sizable nest egg can provide.
That is what we do. Scarlet Oaks Financial Services can help plan your Atlanta Retirement. Don’t wait.