How to Plan (Or Not Plan) for Social Security in Retirement

The most recent Transamerican Retirement survey found that three-quarters of Americans are concerned that by the time they’re ready to retire, Social Security won’t be there for them, and it is especially common for Millennials and Generation X. There may be some helpful tips when analyzing the weight Social Security should have for your retirement and golden years.

• Consider it—but Millennials shouldn’t count on it
  • Edward Gjertsen, a financial planner out Northfield, IL, says, “If a Millennial plans well, they won’t have to worry about Social Security. This generation really needs to understand that Social Security is, in fact, an anti-poverty insurance policy and not a personal pension.”
• Consider it—but benefit design could change
  • Ryan Fuchs, financial planner in Little Rock, AR, states, “I tell younger clients that I firmly believe that Social Security will be around when they reach their 60s and 70s. However, I tell them that I also firmly believe that it will probably look different than it does today.”
• Don’t give it full weight
  • Mackenzie Richards, financial planner in North Kingstown, RI, advises, “For Millennial clients, I recommend counting on 25% to 50% of what Social Security benefits are today.”
• Don’t count on it—consider it a potential bonus
  • Howard Pressman, financial planner in Vienna, VA, explains, “We do not think it’s prudent to factor Social Security benefits into the plans of our younger clients. Building plans based upon these conservative assumptions may lead to better outcomes whether Social Security is available for them or not.”

See Kate Ashford, How to Plan (Or Not Plan) for Social Security in Retirement, Forbes, August 24, 2018.