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How does Social Security fit into my retirement plan?

If you're 55 or older now, you'll probably get the full benefit you're supposed to. Most of the recent discussions about reforming Social Security don't propose to change the benefits of current retirees or near-retirees. If you're younger, you could face a 22% reduction in your payouts after 2041, with the likelihood of further reductions each year thereafter.

It's likely that political leaders will try to make changes in the system to improve its long-term financial health, but such changes are impossible to predict. And even in the best possible scenario, Social Security almost certainly won't pay you enough to live on in retirement.

So if you're under 55 and want to be conservative, don't factor in Social Security when making your calculations about how much to save and invest for retirement. Set aside as much of your own money as you can in retirement savings accounts and invest it wisely. Bottom line: Your financial security in retirement is your own responsibility. To top of page