If you are in your 30s or your early 40s, you may wonder if it is a good idea to start saving now. You have probably seen the debate going on over Medicaid, Medicare and Social Security. You may realize that the social security program is not likely to be there when you retire. If you are wise, you have started putting money back to plan for your retirement.
Social security is designed to be a safety net, but it always relied on the previous generation being smaller than the one that follows it. This did not happen with the Baby Boomers and Generation X. Generation X is much smaller. Because of the way the system is set up, it would eventually bankrupt itself.
You can blame politicians for failing to see this problem. Blaming the politicians is not a bad idea, but it does not help you solve the current issue. Even if congress manages to save social security, it provides only a limited income. Putting money back now ensures that you have savings to fall back on in your old age. It is also a good way to prepare for emergencies. If you start saving earlier, you will be able to take advantage of interest.
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