As the owner of Bergen Financial Group, Darcy Bergen has been a financial advisor for over 20 years. Darcy Bergen advises his clients on retirement and other financial concerns. Although many of his clients are those approaching retirement age, he likes to offer advice for young Americans to help them think about retirement before it’s too late. For starters, there are a lot of misconceptions regarding Social Security benefits Darcy Bergen wants young people to know.
Will Young Americans Have Access to Social Security Benefits When They Retire?
As a financial advisor, Darcy Bergen gets many questions from his customers regarding social security benefits. Although most people who worry about Social Security benefits are those who are approaching retirement age, Darcy believes young Americans should ask more questions about it.
The main question young Americans should ask is, “will Social Security benefits be around when I retire?” For many years, Americans have heard a rumor that Social Security pays more money than what it brings in. Some stats even say that Social Security will run out by the year 2037. According to the government, young Americans don’t have to worry about it running out before they reach retirement age.
The reasoning behind this fact is that the population lives longer, and birth rates are low. It means that people contribute to Social Security longer, and not as many beneficiaries are born. For this reason, if those conditions persist, there will be enough money in 2037 to pay beneficiaries at least $760 a month.
Social Security is Not Enough Retirement Income
According to Darcy Bergen, not many young people know what the role of Social Security will play in their retirement. As someone who has been offering financial advice for the better part of twenty years, Darcy Bergen wants young Americans to know they should not rely on Social Security as their income.
The Social Security Administration states that currently, 50 million Americans receive these benefits totaling $614 billion annually. Even if this seems like a lot of money, it only equals $12,000 a year. Not many people can make ends meet with an annual income of $12k. However, over two-thirds of the elderly population relies on Social Security to provide over half of their income.
It’s also important to keep in mind that many people need Social Security benefits before retirement. On average, 3 out of 10 people will become disabled before retirement age and need to collect Social Security before retirement.
For more of Darcy Bergen’s tips on Social Security and retirement benefits, check out darcybergen.co.