I know that when you work you get money taken from your paycheck for Social Security....

Question

but what if you live for a long time and it takes more than that to sustain you? Or am I looking at this the wrong way?

Answer 1

that money alone will never support you - you have to save most of the money you will need for retirement yourself - thru a 401k plan at work or an IRA

Answer 2

Assuming that they don't change the SS system, you get paid from the time you reach your eligible retirement age (age 67 if you were born after 1959) until the day you die so living a long time is not the problem.  However, the amount you get might not be enough to have a decent life.  Current benefits range from $613 to $2,221 per month (it depends on how much you made and contributed while you were working).  I don't know about you but living on $1000 a month would be pretty pitiful for me.  Moreover, these benefits may be cut in the future because the system is underfunded.  Big problems are expected to start around 2025 so if you are going to turn 67 then or later, you should save as much as possible on your own.  

My advice is: Don't count on SS and if you get anything from them be pleasantly surprised. Save for your own retirement instead.  PS: You'll need at least $1 million so I hope you are young and have lots of time.  Assuming that, put $200 a month in stocks and you'll have about  $ 1 million in 40 years.

Answer 3

In theory enough people will die young that never claim any of what they paid in to make up for the people who live long.

But more money is going out than is coming in so there will be problems one day.

Answer 4

You get back more than you put in over time if you live long enough to collect it.

SS is a safety net providing the minimum so don't expect it alone to sustain you. Find a job with a 401K plan (free money if they match your contributions) and start a ROTH IRA.

For many people the long term "savings" plan includes home ownership. Properly maintained it becomes most folk's greatest asset.

Answer 5

No you are not looking at it the wrong way. Do not depend on the Government to pay your way. Technically that is welfare...I know you paid into it but, I would not count on the money "they say" they give you.

I would set up a good retirement account and put as much money as you can into it. It all depends on your age now but, if you are in your 20's DO NOT WAIT to contribute to it. If you contribute to an IRA you might even be able to get a larger refund at tax time. If your employer offers a retirement benefit then at least put into it up to the amount of  the employers match (if any) and then figure out what you can reasonably contribute above and beyond that. Make sure you know the rules as there are rules about how much money you can put into an IRA or Retirement fund. There are also different IRA's but, your bank or financial adviser can give you information about these.

This way, if you have money in the bank to live on one day, then if you do get any social security payments it will supplement what you have.

Answer 6

Start saving for retirement as soon as possible.

You are looking at it the right way.