Image by AJC1 via FlickrToday government debt and social security are the greatest financial challenges facing our country today. Social security is on unstable ground, not being able to sustain itself. The future holds for it reduced distributions and benefits. It's on a collision course to collapse. So many retirees are dependent on it as their only means of support.
To make matters worse for the social security recipient there is no cost of living increase. The government in it's infinite wisdom says inflation is so low that the cost of living increase is not applicable this year. Even though health care, food and gas prices are rising through the roof.
This lack of an increase in social security has caused quite a stir in the senior community. To keep them happy a $250 check has been talked about being sent out to every social security recipient to make up for the lack of increase.
The problem is that this week it was put up for vote and it didn't pass. Sorry Grammy and Grandpa. This must be devastating for these people. They already live day to day with the checks they get now.
The problem with all this is the people have become all to dependent on their government for all their needs. They have trusted the government to take care of them in their old age and it's failed miserably. It's only going to get worse for them as prices get higher. Even Medicare only goes so far and will probably continue to do less as the budget and austerity program begin to happen as the national debt increases.
Europe's austerity programs are just starting and they're not very popular. The United States will be following their lead very soon.
It only makes me wonder when I am living in retirement, what I will be doing. I don't want to be living under the hopeful good intentions of a government led by men who have to do things not for my benefit but to get themselves elected again. We have finally pushed the limits on the nanny-state. Cradle to grave care by the government is a dismal failure. Trusting in a government that can give a retirement check can also be a government that can takes one away from you, too.
The most important lesson learned from all this is that you are responsible for your own welfare. It's your job to take care of you. Only you can take care of yourself, well and fairly. Preparing for your health care and retirement is your job. Remember the old saying, "If you want it done right, you have to do it yourself."
With the new year coming, make a resolution to prepare for your future. Save and invest to take care of yourself before the time arrives. Start that Roth Ira, get that health care arranged. Quit buying everything in site. Invest the money into your future.
You are absolutely right, there is no better New Years resolution than to resolve to go down the road towards financial independence.
ReplyDeleteI do all my retirement planning and forecasting assuming I will get 0 dollars from Social Security. This means I am solely responsible for my retirement savings. Means testing is coming as well as capricious cuts in benefits to keep the program solvent. Don't expect anyone to take care of you, the implied social contracts of governments can be broken with a stroke of the pen.
ReplyDeletePersonally, I don't expect to get a lot from SS by the time I need it. The government just isn't good at managing money. However, if the program is cut completely then they had better reimburse me for every penny I put into it over the years. Luckily, I don't think the government is dumb enough to completely cut the program... but 25 years from now it will not be the program we know today.
ReplyDeleteSave, save, save people! Every penny counts.
We are taking care of our own retirement, including longterm care insurance. (We are also taking care of my MIL because she is one of the ones only on SS.) My parents, on the otherhand, are lucky. Although they get SS, my Dad has an incredible pension from NY Tele. He's one of the lucky ones, because it also pays for his medical insurance.
ReplyDeleteWe will not have a pension. And, by the looks of it, will not have SS either.