Social Security - Only good if our current government does the right thing and protect future workers benefits!
Workers pay taxes into the Social Security system. Once people retire or become disabled, they can collect the benefits they've earned. How much is saved for retirement depends on how long a person spent in the work force, how much they earned and how old they were when they began to work.
A spouse who never worked outside the home is eligible for benefits equal to one-half of the working spouse's full retirement benefits. Want to know how much you've saved up so far? Call (800) 772-1213 or go to www.ssa.gov/planners/calculators.htm.
Employer pension - Many large companies have their own pension plans. That means they guarantee a certain amount of money, usually in the form of a monthly check, when a worker reaches retirement age. How much a person gets will depend on how long she worked for the company and how much she earned over the years.Unlike 401(k) plans, which are subject to stock-market fluctuations, pension plans are guaranteed by the federal government; although some workers may not get everything they're owed if the pension fund goes under.
Make sure in your retirement planning that you account for the difference between what your employer is going to give and what the federal government will give should your employer file bankruptcy. The difference could make a difference in when you should retire.
