Social Security Benefits Will Not Pay All The Bills

Social Security Benefits Will Not Pay All The Bills



Social Security Benefits Will Not Pay All The Bills
There are few times in​ life worth looking forward to​ that are better than retirement, unless it​ is​ retiring knowing you​ will have financial security for​ you​ and​ your​ family .​
Most people will spend years working, knowing retirement is​ going to​ sneak up on​ them, and​ unfortunately, few will begin​ planning soon​ enough .​
When talking to​ financial planners they will tell you​ that it​ is​ never too soon​ to​ begin​ planning for​ your​ financial future, but at​ some point, it​ will be too late.
It has often been said about business that those who fail to​ plan, are planning to​ fail and​ the same could be said about planning for​ retirement .​
There are very few who will not qualify for​ Social Security benefits when they reach the appropriate retirement age, but the money from those benefits is​ not likely to​ provide a​ lifestyle they have grown accustomed to​ living .​
for​ example, a​ person​ who averaged a​ net pay, take home, of​ about $3,200 per month, may expect only about $1,500 per month if​ they work until full retirement age.
if​ they choose to​ go into retirement at​ age 62, Social Security benefits will be reduced by 25 percent and​ by 20 percent, if​ they work until they are 63 .​
this​ reduction​ will be in​ place regardless of​ how long Social Security benefits are paid .​
The only time it​ will increase is​ when the government issues cost of​ living adjustments, which usually are not very high.
To maintain​ your​ standard of​ living through retirement, a​ minimum of​ $1,700 will be needed each month, in​ addition​ to​ Social Security benefits just to​ stay even .​
you​ might consider the savings by reducing the expenses by not going to​ work everyday, but as​ the cost of​ living rises on​ an​ annual basis, you​ will want to​ know that your​ income has the option​ of​ rising with it .​
How to​ achieve that additional income is​ what you​ need to​ plan for​ now, while you​ are still working .​
Remember, that income from additional employment after age 62, if​ you​ are receiving retirement benefits, will cause your​ monthly Social Security benefits check to​ be reduced.
Others may decide not to​ give up a​ plum job, continue working through their first years of​ full retirement, and​ not receive Social Security benefits at​ that time .​
Continuing to​ work beyond the age of​ eligibility for​ full Social Security benefits will be rewarded by an​ increase in​ allowable annual benefits .​
By staying on​ the job and​ paying into Social Security for​ an​ additional five years, for​ example, will see the monthly Social Security benefits increase by as​ much as​ eight percent per year.
There is​ no magic time to​ begin​ planning for​ retirement, but everyone should be aware by now that Social Security benefits will not offer enough to​ live on​ through their retirement years .​
At some point, a​ person​ has to​ sit back and​ look at​ the big picture, and​ then break it​ down into manageable pieces .​
Consider all available retirement income, Social Security benefits, and​ retirement fund from your​ job, 401K or​ IRA and​ estimate what the monthly income will be once you​ become eligible for​ full Social Security benefits .​
Estimating what you​ will most likely need to​ live on​ and​ any difference between the two amounts is​ the additional amount needed to​ save before you​ quit working.
Whether you​ begin​ another savings account or​ add additional money into an​ existing IRA or​ 401K-retirement fund is​ irrelevant .​
The important thing is​ to​ have the money put aside when you​ will need it​ the most .​
Caution​ should be noted, however that putting pre-tax money into a​ retirement account will trigger a​ tax on​ that amount if​ it​ is​ used prior to​ full retirement age.




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