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Family 411: Surviving without Social Security
CINCINNATI (Sheila Gray) -- You may have asked yourself if Social Security will be there when you need it.
Financial experts said at the very least Social Security likely won't exist in its current form. Friends and working mothers Maryann Pietromonaco and Karen Koeppe have seen the predictions.
Maryann said, "It's scheduled to go bankrupt in 2033."
Social Security might not be there for people who have paid into the system for decades.
Karen's parents live on Social Security, "I see my parents, and I think I have to do something to take care of myself."
Maryann's a financial adviser. She and her husband have crunched the numbers on later life without Social Security. A recent report by Bank of America showed Americans were truly worried. More than half said they fear not having enough money in retirement. But a third weren't willing to cut back on entertainment.
Jeff Daniher, a financial adviser, said, "It's more important to take control of your financial affairs and not be subject to what happens in Washington, D.C."
Daniher said Americans need to consume less and save more because Social Security will change, it will be a question of when and how. Karen and her husband work hard with the hope that their business will carry them through the future. Maryann teaches her sons how important it will be to plan. Joey and Alex pay for their own toys, put savings in a college fund, and impulse purchases are not allowed. All of those policies Maryann and her husband follow too.
Maryann said, "We save first. We put the money away for all of our savings and then what's left is what we can spend."
No matter how Washington addresses Social Security, or doesn't, financial experts agree it will never have enough for Americans to live on the benefits. Experts said it was important to know just how much a person will need in retirement and it's never too late to start saving.
If you have a 401-k plan at work, put money into it.
If you don't, start an IRA or Independent Retirement Account.
Don't touch those savings!
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