Social Insecurity

For three generations, working Americans have thought that Social Security would allow them to retire at age 65 and enjoy the good life. That dream is now a fantasy. If you want to retire with financial security, you’d better start saving and investing heavily—now. Because although our current Social Security system has done a great job reducing elderly poverty and is currently running a $53-billion surplus, it faces a long-term funding shortfall of trillions of dollars. Unless the system is overhauled, closing that gap means pushing the 12.4 percent payroll tax way up to 20 percent or more. Or cutting benefits by 30 percent. So while you’re upping your savings, remember to exercise more and eat right; you may need to work longer than you’ve planned.