One of the reasons why so many people are unprepared for retirement is because of the fact that they are under the impression that Social Security will be sufficient to finance their retirement years. Unfortunately, this is really not the case unless you are capable of living an extraordinarily spartan existence. The numbers are going to move around as different people comprise the Social Security rolls, but the Associated Press is reporting that the average Social Security payout as of this writing is $1082 per month. This is clearly not going to get you very far in the current economy.
There is however some good news being circulated for Social Security recipients right around now, but it may sound better on the surface than it actually is in any practical sense. There had been no cost-of-living adjustments provided for senior citizens who are on Social Security since 2008. These adjustments are tied to the rate of inflation, and no increases have been justified utilizing the criteria that are in place. However, it turns out that there will be an increase in 2012.
Next year people who are receiving Social Security will see a 3.6% increase in their checks or direct deposits. Any increase is always going to be welcomed by those who are receiving Social Security, but when you do the calculations this is going to equate to a $39 per month increase on average. A little less than $10 extra a week is better than nothing, but it is certainly not going to change your life, especially when you consider the fact that the out-of-pocket cost of health care for seniors has risen by 14% since 2008.
The reality is that you have to plan ahead carefully if you’re going to enjoy a comfortable retirement because Social Security is not a cure-all. If you want to map out a plan that allows you to make the most of your golden years, simply pick up the phone and get in touch with an experienced retirement planning attorney to arrange for a consultation.