But I'll get Social Security

Social Security was created in 1934 during the Great Depression by President Theodore Roosevelt to provide a safety net primarily for the elderly. Per the Social Security Administration:

The significance of the new social insurance program was that it sought to address the long-range problem of economic security for the aged through a contributory system in which the workers themselves contributed to their own future retirement benefit by making regular payments into a joint fund. It was thus distinct from the welfare benefits provided under Title I of the Act and from the various state "old-age pensions." As President Roosevelt conceived of the Act, Title I was to be a temporary "relief" program that would eventually disappear as more people were able to obtain retirement income through the contributory system. The new social insurance system was also a very moderate alternative to the radical calls to action that were so common in the America of the 1930s.

Social Security is a supplemental payment. It was never designed to supply a person with 100% of their retirement income needs...in fact Social Security provides about 40% of the income a person received while working, with the remainder to come from pensions, savings, investments and possibly working while retired.

As many of us know, there are few pensions out there and getting fewer all the time. We also know that we're poor at saving and as our 401k's show...the market, even if we knew what we were doing, is not a friendly place. 

"Experts" say that we'll need 70% of our working income to survive in our retirement. So, where will the remaining 30% come from? It looks like all that's left is to continue working. 

In yesterday's post I talked about the 4 types of retirees and the difference about having to work and wanting to work after retirement. And as I also said yesterday, I'm building a business now so I can do something that I want to do when I retire. 

My full Social Security retirement age is 66 years and 4 months which is almost exactly 7 years from now, although I could retire as early as age 62 but I would receive a permanent 26.7% reduction in my benefits...so I will actually only receive 73.3% of the 40% that Social Security provides or about 29.3% of what I'm currently making. So, early retirement may not be such a good idea if I'm expecting Social Security to provide a significant amount of my retirement income.

I am one of the lucky ones, I do have a pension with AT&T and I do have a little in my 401k. Unfortunately, my ex will get half of all of that,  so I will have to either continue working until I die or come up with a Plan B. And I have come up with a Plan B that I absolutely love!

Interesting days

Today - Kiss And Make Up Day and Whisky Sour Day Maybe I'll get a whiskey sour this weekend

Tomorrow - Dog Day and Women's Equality Day We still have a long way to go

September - Chicken Month and Piano Month Maybe it's time to dig my keyboard out of storage

Next Tuesday - Emma M Nutt Day Emma was the first female telephone operator. Operators were originally men, but that didn't work out too well. It's also Building and Code Staff Appreciation Day and Calendar Adjustment Day

September 25 - Hug a Vegetarian Day I may hug one, but it's very unlikely that I'll become one. It's also Comic Book Day and One-Hit Wonder Day One of my favorites! Let's not forget Psychotherapy Day nor World Pharmacists Day. Or how about World Dream Day?