Social Insecurity Essay

1115 WordsMar 8, 20125 Pages
Social Insecurity Melanie Johnson Com/172 March 11, 2011 Prof. Eric Wright Social Insecurity Retirees should not depend solely on Social Security for their income. The increased cost of living and the diminishing social security funds will require retirees to have other sources of income to maintain a decent standard of living. Many factors influence a person’s views on retirement. An individual’s attitude and perspective on life has an important impact on how they plan for the future. Some people believe social security will provide for them when they reach retirement age and do not feel a need to prepare for retirement. Others have the philosophy to live for the day. Their need to satisfy their current wants prevents them from planning for their future needs. Some individuals are simply not financially able to save for retirement. They are struggling to provide the bare necessities for themselves and their families. Often times people become distracted by the burdens of life, working, taking care of children and basic needs cause them to forget someday they will retire. Traditionally when people retire they are debt free with some savings, unfortunately many retirees cannot achieve this goal. The median household income in America is around $50,000. However, according to Sutton (2010)”the percentage of workers who said they have less than $10,000 in savings grew to 43% in 2010.” The recent decline in the economy is one factor causing Americans to lose savings. The layoffs of workers, the decline in the stock market, the decrease in housing values, and the increase in fuel prices has forced many Americans to dip into their savings just to survive. The decline in 401 (k) values caused some Americans to withdraw their funds in fear of losing it all. The real estate market also took a dramatic hit. Suddenly a significant number of Americans found themselves

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