Social Security dependency ratio explained

The Social Security dependency ratio says, the growth in beneficiaries and the growth in workers remained roughly the same from 1975 through 2008 when there were 3.2–3.4 workers for each retiree. However, since 2009 this ratio has consistently dropped, and as of 2013—the most recent year for which data are available—there were only 2.8 workers in the system for each retiree collecting from it.

 The ratio of workers to retirees is projected to continue falling. By 2034, the best-case scenario is 2.3 workers paying for each retiree, and in the worst-case scenario that ratio is 2 workers per retiree. Given that the number of participants collecting from the system has been rising faster than the number paying in, it is unsurprising that the Social Security trust fund is expected to be empty by 2034.

 I am not saying this like a scare tactic, but you need to do as much as possible to save for retirement knowing that changes to Social Security will have to happen at some point. Having at least a portion of your retirement income, the money you can’t afford to lose, in safe money strategies, can give you protection of your principle. When the market rises you grab the gains but when it falls you stay the same. You get a reasonable rate of return, and if you choose you can get a lifetime income, that can fill in the gaps you might otherwise have in your portfolio.
 For more information go to yoursafemoneyshow.com.