Lesson 9: The Importance of Investing for Retirement

Social Security

Pension Income

Government loan

Investment Income

Most Americans are able to retire at their full retirement age

Many retirees are able to support themselves on Social Security payments alone

The majority of employers offer pension plans for workers

Many people may need to invest to build wealth and to support themselves in retirement

What age they plan to retire

The current balance in their checking account

The lifestyle they want to lead in retirement

How much money they expect to receive through Social Security

Social Security is a mandatory payroll deduction for current workers who then receive the retirement benefit on an annual basis.

Social Security is an optional program to allow retirees to continue contributing to their individual retirement accounts.

Social Security is a government program that pools contributions from current workers to then provide retirement support benefits to those who are eligible.

Social Security is a federal health insurance program for retired workers.

Assume an aggressive rate of return because that is what the market guarantees.

Assume an aggressive rate of return because it accounts for other income streams, such as Social Security.

Assume a conservative rate of return so that you can plan the worst but hope for the best.

Assume a conservative rate of return because that is how the market is going to perform.

You'll need more money each year in retirement.

The federal government contributes to your annual savings once you open a retirement account

You're assuming you're going to earn more each year so you can contribute more.

The increased amount each year takes inflation into account.