The article stresses the inadequacy of relying solely on Social Security for retirement, describing it as a flawed system akin to a Ponzi scheme. With dwindling ratios of workers to retirees, the burden on the system is increasing. In contrast, 401(k)s provide a more reliable means to accumulate retirement savings, allowing individuals to secure their financial futures. It encourages maximizing contributions to these plans to avoid poverty in retirement, highlighting the necessity of proactive financial planning and consulting with advisors for tailored guidance.
You can't rely on Social Security to offer you a retirement of comfort and ease. Contributing to a 401(k) retirement program is your best bet for accumulating sufficient wealth to not fear retiring in poverty.
If we only had Social Security to rely upon, we would be in a lot of trouble. It's a broken system built on flawed logic and has been rightly described as a Ponzi scheme.
When Social Security started, the tax for both workers and employers was just 1% on the first $3,000 of wages. Today, both pay 6.2% on all wages.
The 401(k) programs were a godsend. They allowed people to save for retirement beyond the pittance the government doles out to retirees.
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