save now, or pay later
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Save Now, or Pay Later. by Burnett Sawyer. Imagine…this is your paycheck. You’ve worked hard for it. But first… 20% for income tax. Uncle Sam must have his share. Then… 30% for Social Security. According to Senator Alan Simpson, our generation will have to pay this much. - PowerPoint PPT PresentationTRANSCRIPT
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Save Now, or Pay Later
by Burnett Sawyer
![Page 2: Save Now, or Pay Later](https://reader036.vdocuments.us/reader036/viewer/2022062816/56815d4c550346895dcb559e/html5/thumbnails/2.jpg)
Imagine…this is your paycheck
• You’ve worked hard for it.
![Page 3: Save Now, or Pay Later](https://reader036.vdocuments.us/reader036/viewer/2022062816/56815d4c550346895dcb559e/html5/thumbnails/3.jpg)
But first…20% for income tax
• Uncle Sam must have his share.
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Then…30% for Social Security
• According to Senator Alan Simpson, our generation will have to pay this much.
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The news gets worse!
• Even that won’t be enough to keep Social Security alive in the year 2043.
• Remember that year—2043.
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What’s the problem?
• The Social Security system can’t ensure our savings for retirement.
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What’s the solution?
• We have to start our own savings plans, and the earlier the better!
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Social Security Timeline
• 1935: Social Security system began
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Social Security Timeline
• 1935: Social Security system began • 1983: System is adjusted, predicting a 2056 end
• 2056: The end of Social Security (1983 adjustment)
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Social Security Timeline
• 1935: Social Security system began • 1983: System is adjusted, predicting a 2056 end• 1992: System is revised, predicting a 2043 end
• 2043: The new end of Social Security (1992 revision)• 2056: The end of Social Security (1983 adjustment)
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Social Security Timeline
• 1935: Social Security system began • 1983: System is adjusted, predicting a 2056 end• 1992: System is revised, predicting a 2043 end• 2029: Social Security to bankrupt the US (AARP report)• 2043: The new end of Social Security (1992 revision)• 2056: The end of Social Security (1983 adjustment)
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What won’t work . . .
• We can’t leave the problem to the government.
• One more “fix-it” job won’t solve anything.
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What will work . . .
• We each need a personal savings plan.
• We should save $200,000 by age 67.
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A $200,000 Savings Plan
$0$100$200$300$400$500$600$700$800$900
Monthly savings necessary
Age 25Age 35Age 45Age 55
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In summation . . .
• The Social Security system can’t promise us financial security when we retire in 2049.
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So let’s get started . . .
• We have to start our own savings plans.
• The earlier we start, the easier it will be to reach our goals.