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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