Many Americans approaching retirement age unfortunately have not saved enough to live comfortably for the rest of their lives. The reason could be an unexpected emergency in their work or personal lives, or that they simply did not make enough money in their career. This is why Social Security is so important.
But as Harold Pollack, co-author of The Index Card, explains, the Social Security system is flawed, and needs to be repaired. Pollack believes that if the cap on earnings subject to Social Security goes up, that will help. Higher-income Americans like him might also have to accept lower benefits. The sooner we make changes to fix Social Security, Pollack says, the more compound interest will work in our favor.