Warren Buffett is very talented at acting on instinct while the rest are in a frenzied panic. Buffett reassures investors it is time to bet for America, not against America. Currently, the government has an unfunded position in Social Security, choosing not to report this as a liability on their balance sheet. Even if this is the way things are done now, the government does keep a Social Security obligation on its balance sheet. Future Social Security expenditures come to $14 trillion in the negative. Buffett may feel that U.S. economic growth is high because it will raise Social Security tax revenues higher but some may feel that young people today and those not born yet may have a reason to be concerned.
Barack Obama agrees with Warren Buffett about Social Security being there when people retire. Social Security involves paying a tax up to a certain point of your income. All the money you earn goes back into Social Security, he states. Social Security plays a role in retirement income but it is not the only way to increase retirement income. Buffett is 87 with no plans to retire anytime soon. This is because many older Americans want to work part-time while retired.
Because of ageism, many workers are forced into retirement. Saving money is important because people don’t know if they will lose the ability to work. Disability insurance runs out at 67. People ages 70.5 and older have to use required minimum distributions from their retirement accounts unless you are still an active participant in your firm’s 401K. This generally means you have to take money out of your requirement accounts. On the upside, working longer can mean saving more on health care. In essence, you have to take care of yourself without losing sleep over your job, which can cause stress.