While Social Security serves as a source of income for millions of current seniors, new data reflects that retirees are losing confidence in the program. This is largely due to the impression that Social Security is close to bankruptcy. Fortunately, that is an unlikely occurrence because the program is funded by payroll taxes. Therefore, as long as we have a workforce that pays taxes, seniors will receive benefits.
Since Social Security is not a program meant to sustain seniors on its own, it’s important that investors establish savings. This can be achieved with a 401(k), IRA, or stock investments. With consistent saving over time, one can accumulate a good amount of wealth. Investors can also get more out of Social Security when strategically claiming their benefits. By waiting until full retirement age, which ranges from 66 to 67 depending year of birth, deductions can be avoided. Work with your Enso | Sonoma financial advisor to establish a savings plan that will add to your comfort as a retiree.