What does Social Security have to do with it….

…And it even still be here when we reach retirement age?

The famous entitlement programs from the US government – will Medicare and Social Security still be around when my generation needs them? I’ve always found the term ‘entitlement’ to be off-putting when referring to these programs. Through our payroll taxes, all U.S. workers fund both of these programs- so this is essentially the government’s 403B and HSA for all of us! Had we put that money away on our own, (which I don’t advocate we should do, but if we did…) we wouldn’t feel that we were entitled to anything special. We would simply be using our retirement funds to pay for our retirement, and our HSA funds to pay for health care costs. However when the government takes this money and returns it to us in the form of these programs, allowing us security in our golden years, we called them ‘entitlements’, as if we aren’t the ones who originally funded them!

OK, rant about the term ‘entitlement’ over. Personally, I am very much including Medicare in my retirement planning – I am saving extra funds to pay for medical cost that will not be covered by Medicare, but I am fully planning on using Medicare once I turn 65. I don’t feel as confident about Social Security payments– when I look at what my SS payments are estimated to be (you can find this at this site ), I am only counting on receiving 1/2 of that estimate. I have seen experts estimate that Social Security will still be able to fund about 75% of the rate that it is presently promising us, so you might chose to make your calculation 75% of the estimate.

But basically, I see Social Security as the icing on the cake – I am not planning on being dependent on that monthly income. And I’m definitely not planning on taking it before the age of 70 if I can at all avoid it. If I do get an extra thousand dollars a month from Social Security at the age of 70, I will use that money to go visit my kids and grandkids – and spoil those little suckers rotten 🙂

Any thoughts? Please join the discussion below…

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