Why should you plan ahead for retirement? After all, you are going to be receiving Social Security when you reach the age of eligibility. And, when it comes to health care expenses you have no worries because you will be eligible to participate in the Medicare program.
While some people do embrace this point of view doing so can result in some rather negative consequences.
The truth is that Social Security is not enough to live on comfortably in most cases. The actual average will fluctuate constantly as different people comprise the Social Security roster, but throughout 2012 the average monthly payout was approximately $1230 per month.
This is not going to provide you with the type of retirement that you have probably always envisioned.
In addition to the relatively low monthly benefit you also have to contend with ever-rising prices. There are cost-of-living adjustments, but when they are in fact handed down they are very modest.
In 2010 and 2011 senior citizens on Social Security saw absolutely no increase in their benefits to offset increasing costs. In 2012 the cost-of-living adjustment was 3.6%, and in 2013 benefits are going up by 1.7%.
However, in 2013 people on Medicare will have increased out-of-pocket expenses. The Medicare Part B deductible is rising from $140 up to $147. The Medicare Part A deductible is going up from $1156 to $1184.
In addition to the increases in these deductibles the monthly premiums that senior citizens must pay for Medicare Part B coverage will be rising by five dollars per month.
When you are barely getting by any increase in your out-of-pocket costs is going to hurt. On the other hand, if you are well prepared for retirement you can address these increases with ease.
If you would rather be among the latter group you may want to discuss your future with a good South Carolina retirement planning lawyer.