We Need a Retirement Plan

With the way the economy is today, we need all the money we can get especially when we retire. The topic of my paper is “We do not need a retirement plan because social security will cover our needs when we retire. This is a topic that I strongly disagree with; Social Security alone will not be enough to cover our needs when we retire. Social Security or SSI is a program financed through general revenues; it is designed to help adults who are blind, the elderly and disabled people who have little or no income.

SSI provides cash to meet basic needs for food, clothing, and shelter. Whether you can get SSI depends on your income and things you own. SSI benefits are payable to adults who have limited income and resources, meet the living requirements, and are otherwise eligible. If you don’t fall into any of these categories and you have already retired without a retirement plan, you won’t have a source of income to support yourself. The Federal benefit rate for a SSI payment is $674 dollars, as we all know $674. 0 is not nearly enough to live, and that may only be enough to pay your rent. You will still have other living expenses such as food, bills, and personal items, not to mention health care. Although there is Medicaid, and Medicare but not everyone is eligible to receive those benefits. These are a few reasons why Social Security will not be enough to cover our needs when we retire without a retirement plan. With Social Security there is no guarantee that you will qualify to receive payment.

SSI is based on your income, money that you receive such as wedges, other SSI benefits, and pensions. The amount of income you can receive each month and still get SSI depends partly on where you live. Some of the resources used in the qualification process are; real estate, bank accounts, stocks and bonds, and cash. You may be able to receive SSI benefits if your resources are worth no more than $2,000. A couple may be eligible to receive SSI benefits if their resources are worth no more than $3,000. Another big issue with retirement is Health Care.

Sure Medical insurance is included when you receive Social Security called Medicare and Medicaid, but again you have to qualify for that as well. You may think that Medicaid and Medicare are the same; actually they are two different programs. Medicaid is a state run program that provides hospital and medical coverage for people with low income and little or no resources. Each state has its own rules about who is eligible and what is covered under Medicaid. The program helps with the cost of health care, but it does not over all medical expenses or the cost of most long-term care. Medicare is financed by a portion of the payroll taxes paid by workers and their employers. It also is financed in part by monthly premiums deducted from Social Security checks. Some people qualify for both Medicare and Medicaid. Medicare is our country’s health insurance program for people age 65 or older. Certain people younger than age 65 can qualify for Medicare, too, including those who have disabilities and those who have permanent kidney failure or amyotrophic lateral sclerosis (Lou Gehrig’s disease).

In order to qualify for Medicare before the age of 65 if; you have been entitled to Social Security disability benefits for 24 months; or you receive a disability pension from the railroad retirement board and meet certain conditions; or you worked long enough in a government job where Medicare taxes were paid and you meet the requirements of the Social Security disability program; or you are the child or the widow(er) age 50, or older, including a divorced widow(er), of someone who has worked long enough in a government job where Medicare taxes were paid and you meet the requirement of the Social Security disability program.

During my research I was able to interview 3 people; Thomas Burrell a retired veteran who has SSI and retirement, Kathy Burrell retired from the school system that only has retirement, and Thelma Kelly an elderly woman who is retired but only receives SSI. Mr. Burrell is retired from the military in 1991, retired from the United States Postal Service in 2001; he started to receive SSI benefits in 2001. When I interviewed Mr. Burrell, he had a lot to say about SSI and retirement. Even though he is receiving both, he knows that if he only had one benefit he would not be able to maintain his lifestyle.

By Mr. Burrell receiving SSI and retirement he is able to provide for his family. As far as health care goes, Mr. Burrell has Medicare. By him receiving retirement he does not qualify for Medicaid which will cover all of your medical needs. You are not making a lot of money with either the SSI benefit or retirement, but with both combined you will be able to survive. T. Burrell (personal communication, April 6, 2011) Kathy Burrell, who has just retired in January of this year, only has a retirement plan and no SSI benefits.

Mrs. Burrell retired through the Florida Retirement System (FRS) and the 401K plan, and being employed in Florida you have to wait 4 months after you retire to access your money. You will need to have some kind of income to last until you receive your full retirement. Mrs. Burrell knows that she is not able to survive on retirement alone. If she didn’t have a husband, after she retired she would have to get another form of income to make ends meet. As far as health care goes, If Mrs.

Burrell did not have military insurance from her husband; she would not have or be able to afford it. K. Burrell (personal communication, April 6, 2011) Thelma Kelly a resident of Columbia, South Carolina has been retired for the past 15 years. Mrs. Kelly who is a widow has been receiving SSI benefits from her late husband, and because she is eligible. Mrs. Kelly receives $700. 00 a month, says that it is a blessing that she does not have a house payment because she would not be able to afford it.

Mrs. Kelly struggles every month to make her $700. 00 a month check last for food, gas, utility bills, and other personal items. T. Kelly (personal communication, April 6, 2011) In conclusion it would be beneficial to have a retirement plan along with Social Security benefits to be able to support yourself. As mentioned earlier there are a lot of stipulations and requirements in order to qualify for Social Security. Social Security alone will not be enough to cover our needs when we retire.