What Are Some Common Concerns About Social Security and Pensions?


Quick Answer

Commonly stated concerns relating to Social Security include questions about the inner workings of the system and unease over its long-term viability, according to FindLaw. Voluntarily established private-sector retirement plans, on the other hand, frequently encounter questions about plan selection, management, costs and guarantees, according to the U.S. Department of Labor.

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Full Answer

Unfortunately, the answer to questions regarding the long-term viability of Social Security is not encouraging; the Social Security Administration faces significant cash flow constraints and may be unable to fully meet its obligations in the future, notes FindLaw. For this reason, prospective retirees should seek for alternative sources of retirement income.

How to maximize Social Security benefits is another frequently stated concern, explains FindLaw. Earning as much money as possible before retirement is the first step; not claiming benefits before the retirement age is the next step. Couples have another advantage; they can opt to claim and live on the benefits of one spouse first and then request the rest later.

The probity of a plan fiduciary is a typical concern in private sector retirement plans, reports the U.S. Department of Labor. To guard against mistakes, dishonesty and other malpractices, plan managers must have fidelity bonds, a form of insurance that covers the retirement plan against loss precipitated by fraudulence and error.

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