Each year the Social Security Administration looks over reams of data and announces whether a benefit increase will be applied, and if so, how much, to keep recipients up with inflation — although how well that happens is up for debate.
Posts tagged ‘social security’
Ready to bust another retirement myth? Here’s one we hear often: “Your living expenses go down once you retire.”
Certainly, there are some expenses — like commuting, lunches out and clothes for work — that will likely drop. If you’ve planned well, you may even have your home paid off by the time you retire.
Here’s where the myth gets busted. Most experts agree that other expenses go up in retirement; sometimes significantly. Many new retirees, for instance, want to do all the things they couldn’t do during their working years. Think hobbies, travel, visiting the grandkids—most of those things cost money. Read more
When you retire, you’ll likely have a nice amount of money saved up — possibly even more than you thought you’d have. So withdrawing a small amount, such as five percent or even a little more, each year to help cover your expenses during retirement won’t add up to much, right?
One of your biggest retirement risks is outliving your savings. In fact, most retirees should plan on living 20 or 30 years (or even longer) in retirement. That’s why you have to be very careful not to draw too much money from your savings each year. Read more
Ready to bust some myths? (No, we’re not setting off rockets or combining Diet Coke and Mentos. We’ll leave that to the Discovery Channel’s “MythBusters” guys.)
I’m talking about retirement myths. And there are a lot of them.
This is the first in a series of posts by Joe Moklebust, Director Business Development – Retirement Solutions, and me that debunk commonly held beliefs about retirement. I’ll tackle the first myth: “Between my pension plan and Social Security, I’ll be fine.”
Baby Boomers have seen traditional pensions frozen or discontinued, job security threatened, 401(k) balances rocked by booms, busts, and financial crises, and health care costs skyrocket dizzyingly. Their response has been broadly characterized by inertia. No surprise there; people don’t handle ambiguity very well, and many avoid it whenever possible, even to their future detriment.
Retirees have always felt financial pressures, though the mix of traditional and contemporary forces they face today is new. And preparation is even more essential in order to sustain longer retirements through even severe market downturns.
Social Security recipients on fixed budgets count on their monthly benefits. But a proposed change tossed around in Washington D.C. budget discussions could leave them counting on less to meet their future needs. At issue is the way the cost-of-living adjustment (COLA) is calculated when determining Social Security benefit increases. Read more