If you think that social security benefits can sustain your current standard of living throughout retirement, think again.  In July, 2015, the average monthly social security payment to a retired worker is only $1,335.97 and the average monthly social security payment to a disabled worker is only $1,165.18. (Source: www.ssa.gov)  Moreover, there are threats circulating in the news that there might not be enough funds left in social security by the time you retire.

For those living in Northern and Central California cities like Sacramento, Roseville, Rocklin, Stockton, Modesto, Fairfield, Vallejo, Woodland, and Vacaville, you know that the monthly social security benefit is barely enough to cover the costs of rent and utilities.  If you still have a mortgage by the time you retire, you can forget about having eletricity and eating.  If you have a spoues that is also receiving social security benefits, you might just get by, but it will hardly leave you any savings for any contingency or emergency.

This is why you should never raid your pension to payoff credit card debts or personal loans.  It is an even worse idea to withdraw funds from your 401k or IRA to make minimum credit card payments because most of the payment goes towards interests and penalties with very little to principal, if any.  Moreover, you get hit with a hefty tax penalty at the end of the year and recent tax liability are not dischargeble or cannot be eliminated through bankruptcy.  However, credit cards and personal loans can be discharged or eliminated through Chapter 7 or 13 Bankruptcy so that you can keep your pension for retirement.

Bankruptcy, however, is not for everyone.  That is why you should consult Muoi Chea, an experienced bankruptcy attorney on how bankruptcy can eliminate your debts and protect your assets at the same time.  She has Bankruptcy Attorney's office locations in Sacramento, Stockton, and Fairfield, California to provide debt relief for residents of Northern and Central California.