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10.2 Saving and Planning

for Your Retirement

As you finish up school, you will hopefully be in a
position to move beyond contributions to your emer-
gency savings fund and start contributing toward
long-term investments. This is the key to a secure
retirement. The sooner you start to save, the bigger
your nest egg will be when you are ready to retire.
When you retire, you will likely live for another
20 to 30 years (Social Security Administration, n.d.).
That’s a long time to go without a paycheck. That’s
why it is imperative to plan accordingly.
LDProd/iStock/Thinkstock
These two young people have discov-
ered the value of saving money. They
What Is Social Security? want to prepare and save for retirement.

The Social Security Act was passed in 1935 and included the Old-Age, Survivors, and Dis-
ability Insurance program. A large component of this program is the payment of retirement
benefits, intended as a safety net for lower paid workers who can’t save enough for retire-
ment to sustain themselves. The amount of Social Security benefits workers currently receive
at retirement varies based on how much they have paid into the system over their working
career. To review your own benefits, you can visit the Social Security Administration here:
http://www.ssa.gov/myaccount.

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