Page 1 of ‘Your Social Security Statement’
By CHM on Nov 27, 2007 in Social Security
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Please click on the thumbnail to the left to see a sample of Page 1 of Your Social Security Statement. The numbers highlighted in red are explained, and expanded upon, in the post below.
(It’s best to keep 2 tabs open in your browser and bounce back and forth between page 1 of the Social Security document and the highlighted sections in this post.)
Enjoy…
This is your customized social security statement, prepared especially for you.
A summary of what you can expect to find inside this 4 page document.
It’s important that the social security administration has the right earnings information for you. On page 3 of this statement you will see a history of your earnings. If any of those numbers seem wrong, back check the numbers versus your W-2 or tax return for that year.
For me this is an eye opening fact. For decades many Americans relied heavily on social security and pensions to fund their retirement’s. I wrote a piece in August about Americans that live on social security.
Going forward, it’s so important to realize you have to do more on your own. If you begin to aggressively plan your future today, it’s not going to matter (as much) what happens to social security down the line.
I think it’s important to view Social security as something of a bonus. If it’s available for you in 30 years that’s great, if not, well, you’re Ok with that because you’ve taken the necessary precautions. I think that’s the right mindset to have in order to stay motivated.
My generation needs to get more proactive in planning their future, via Roth IRA’s, 401K’s, individual investment accounts, etc. The first place to look is the Roth IRA.
We have an aging population that are living longer, due in part, to advances in medicine. Because of this fact, by 2017, there will be more money going into SS than is coming out. This paragraph also talks about the money being ‘exhausted’ by 2041, right about the time I would be 70 years old.
I feel the Social Security Administration will take the necessary steps to make sure that this doesn’t happen. Currently, the US government takes the surplus dollars paid into the system and buys US Treasury bonds; more aggressive investments could dramatically effect the life of these funds.
There’s also been a lot of talk about privatizing social security, where the individual controls the way his (or her) social security benefits are invested. There has been a lot of controversy and debate about this idea.
I like this idea or at least a hybrid version, where a portion of the benefits are controlled by the individual. And when I say controlled, I mean, they are given the option to invest in carefully selected choices. For example, a target fund that coincides with the projected retirement date.
Page 2 of your social security statement tomorrow…
Tags: Social Security, Your Social Security Statement
kentuckyliz | Feb 5, 2008 | Reply
When using retirement planning calculators, I always do both ways: counting SS and zero SS. It’s nice to know I’m doing my plan well enough to survive whether or not SS survives!
Long-lived old people who didn’t have enough children to support them in their old age–this will result in lower if any benefits, means testing, high taxation, in the future. My survival and thriving will be in spite of SS and not because of it.