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401K? Then why am I making payments for social security?

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What is the 401k? I have read it is a retirement plan, but i thought that is why we have social security, so we can retire and then the government gives us some money to live off?

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  1. 401(k) is a section of IRS code that allows you to set aside a portion of your income before tax as retirement savings...you pay social security tax to support the people collecting it now and in the near future, not so you can get that money yourself later. 401(k) money is always going to be there for you to take after retiring.  And really if you're under 30 years old, i bet there won't be any social security left for you (and me as I'm 25) when you retire.


  2. Yes, a 401 is a retirement plan. But if you think Social security will be enough, then why are are you putting money in the 401???

  3. 401K is a long term investment plan that compares risk to return.  You have the option of investing a portion of your income (Gross) into a 401k plan to offer more security in your retirement.  The Social Security plan does not mean you get what you pay into it.  You only get a portion, if it is even still available when you retire.  Use a 401k to establish your retirement, as those are YOUR funds, and will be available to you on retirement.

  4. Not everyone puts money into a retirement account and when they do it's often not enough.  You can use you social security money to pay you taxes.

  5. I really think YOU need to do a little research and find out what purpose each will play in your retirement plans and just how well you will be able to live off either one without the other.

  6. Because you are paying for people now to be on Social Security. You will still be able ( theoretically) to collect it for yourself when you hit retirement age.

  7. I can get my full retirement with Social Security at age 72 and I will get 1072.00 a month since I am only 34 right now - I have a feeling that this amount will not be able to support me.

    What do you think?
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