Can I Retire on Social Security
With inflation on the rise and savings disappearing, the question is, Can I Retire on Social Security? With scarce exception, the days of working for the same company for 40 years after high school to earn a ride through retirement with an earned pension are now gone. Even for those fortunate to have worked in the public sector and earned a pension, those pensions are teetering on insolvency.
According to Forbes, U.S. public pensions are underfunded to the tune of $1.4 trillion, and even that calculation is determined while using slight-of-hand accounting. The actual number is more likely and more accurately reported as having unfunded liabilities of about $5.2 trillion. That’s slightly less than one-third of our entire federal debt! Frankly, it doesn’t matter what figure you use, the point is that these funds owe more than they could ever pay back. They’re insolvent, and it’s only getting worse.
Even if these funds could earn 15% or even 20% for the next several years (which they can’t), the liabilities of these funds will continue to bloat by 15%. If I can’t plan on a pension to support me in retirement, then Can I retire on Social Security?
The answer to that question is complicated, but also quite simple. What happens when our government commits to another war overseas or pays $350 for a toilet seat that costs $21 at Home Depot or gives a $300,000 grant to someone to study where on the body is the most painful place to get a bee sting? Where does the money come from to pay for that? The government doesn't make and sell a product to produce income. The government doesn't EVER sell a piece of property at a profit to generate income. So where does it come from? Me and you, either through direct taxation, or through inflation because they just printed more US Dollars to cover the debt. And there is more, so much more, regardless of your politics.
Even in retirement, you will have no control over whether you are increasingly taxed or not. In an assessment of “Consumer Expenditures” for 2016, the Bureau of Labor Statistics showed the average bill for federal, state and local taxes was $10,489. By comparison, Americans spent $9,006 on food and clothes, with most of that going toward food. Obviously, Americans are now spending more of their money on taxes than they are on food and clothing, and it is not wise to think that will get better in the future for some reason. The average American tax bill rose 41 percent overall since 2013. With little faith that anything will change that trend, be honest and ask yourself, Can I retire on Social Security?
Outstanding student loan balances have increased more than 457% since 2003, according to a FOX Business analysis of statistics from the Federal Reserve Bank of New York's Center for Microeconomic Data. In the first quarter of 2003, $241 billion in student loans were outstanding, compared with the first quarter of 2017, when that number jumped to $1.34 trillion. In the first quarter of 2017 alone, student loan debt jumped 2.6%.
Governments have few options other than to tax their people, since there seems to be no control on the spending side. Some residents in Illinois are suing Walgreens and McDonald’s over the companies' rollout of the Cook County soda tax, but former McDonald’s USA CEO Ed Rensi said the government is ripping off its citizens.
“Look, Walgreens and McDonald’s are two outstanding companies, they don’t want to cheat the citizens. They don’t want to cheat people, but the county government puts them in a position where they don’t have any choices but to move forward,” Rensi said.
If we are honest, we have to admit that Social Security will not be a dependable source of funding for our retirement before too much longer; it just cannot keep up. So then, what can we do? One of the best ways to increase your income, even if you are getting close to retirement, is online marketing.
Online marketing is also available to every one of us, not just the tech-savvy among us. If you want to know more about this tremendous way to add to your income, click on the link below and take advantage of a free 7-part video training series. It will walk you through the steps and teach you how to retire without worrying whether your Social Security will be enough for you to maintain your lifestyle. You don’t need any special experience to succeed in the best way to answer the question,
Can I retire on Social Security?
Until next time,