When I first started in the financial services industry nearly 15 years ago, I used to joke that social security wouldn’t be around for much longer. At that point in time I had zero clients that were retired. Currently, I now have nearly 40 clients whom are retired and every month receive a check from the Social Security Administration averaging a “net” $3500 that gets deposited into their account. each month. This is real money, crucial for living, and money that often times has to last an individual for over 30 years.
Your decision to retire will be one of the most important decisions you’ll make in your lifetime. It is important to know all of the important facts about Social Security and what are the best decisions for YOU and the best time to retire. Typically, the best time for an individual to retire is when they are at their FRA (Full Retirement Age). To find out your FRA, please see the steps below:
1. Social Security only replaces about 40% of an average wage earner’s income after retiring
2. Social Security is for more than retirement
3. Higher lifetime earnings result in higher benefits
4. The age at which full retirement benefits are available gradually increase up to age 67. If you decide to delay your receiving benefits, your benefits will be increased a certain percentage, depending on when you were born. (Vice versa)
5. Cost of Living Adjustments (COLA) are incorporated into social security earning to counteract the effects of inflation. Simply, if inflation is not high or consumer prices increases drop, recipients of social security do not receive a COLA.
* To read more on the different areas regarding Social Security and the top facts you will need to know, please click here.
1. Your complete wage history
2. Desired Retirement Age
3. Estimated Life Expectancy
4. Inflation & COLA
5. Other Sources of Income (qualified accounts & non-qualified accounts)
If you are thinking about retirement in the near future, Croft Enterprises is always looking to support, guide and advise new clients to get their new retirement started off in the right direction. If you enjoyed and connected with this post, make sure to connect with us on Facebook, or send us an message directly.