@ Allison #12, I’d be surprised if SS isn’t salvaged in the next 25-30 years, at least to the extent of a guaranteed minimum benefit. It may well be that I don’t get the payment I’m currently “entitled to” (if I go by my SS statement), but I’m fairly certain that by the time I want benefits there will still be *something* available for me (I’ll be 70 in 2035).

My prediction is the US government is more likely to cut retiree healthcare benefits than to cut retirement income-security benefits. Simply because there’s all kinds of reasons why someone might be broke in old age, and not all of them are self-inflicted.

Whereas, coldly stated, ill-health in old age, in the US, often IS self-inflicted, as is excessive consumption of healthcare services. We do have to accept that the government can’t take care of all our needs, much less all our wants. Medicare coverage for Viagra? bariatric surgery? proven-to-be-ineffective back surgery? These things will have to go.

My company doesn’t OFFER a 401K, so I’ve been researching (thanks, Trent) what to do instead. 25 years is a long ways away when I look at whether SS will be there or not. But is NOT enough time when I realize I may need an entirely different game plan.

It used to be that I was fairly confident we could live off of our SS because with 25 years left to go, we ALREADY will get enough SS to keep a fairly comfortable lifestyle — because we are frugal NOW. But the way things are in the world, well… hmph.

I agree- the PBGC is not something an individual can use as are source. It is only there, or not, through one’s employer. I hate that kind of mistake in a blog- it makes me wonder how well researched the rest of the talking points and entries are. A retraction/clarification is called for, to prevent people wasting time and energy calling the PBGC. If there is another kind of pension insurance- I’d love to hear about it. I find this blog best for mundane how-tos that the author has used himself, basic common sense reminders/refreshers, and links.

My favorite tip of yours is to share resources and ideas. Especially with co-workers. This is especially easy to bring up at retirement parties. And when you find out someone’s about to retire, you can ask them questions about their techniques along with questions about what they will be doing next.

Most people grouse about spending too much money. I have never heard anyone complain they saved too much.

Whether or not Social Security or Canada Pension are around when we all retire it’s important to have as many options available as possible.

My best tip would be:
If your company has a pension plan that offers a match, always take it, even if you have to cut back somewhere else in order to get the full match.

thanks for clearing that up. im pretty sure thats how it worked, but his paragraph confused me. i was thinking maybe he was talking to employers in that one? *shrug*

John DeFlumeri Jr

How do you do that? By increasing your investments/savings. The other option, of having a lower income, is not usually worth considering :-)

401(k), IRA, and HSA contributions do not lower your Social Security or Medicare tax. They only lower your Federal taxes.

I’d say the most effective of the tips above, for most people, will be to minimize requirements and to develop self-sustainability. Right now, for example, my parents (retired) live in a very expensive, very inefficient, very oversized house on a property where they don’t have the option of growing a meaningful amount of their own food – even though they work, hard, outside almost every day. I’m shooting for a retirement in a small, efficient home with enough land to have a serious garden and some laying hens.

It’s true, most of us have very few options for reducing what we pay in Social Security tax; but one good way that wasn’t really addressed is by maximizing pre-tax contributions to 401(k), IRA, or HSA accounts. I think it’s well worth reducing current income in order to save current taxes *and* ensure future income.