A New Look at Retirement Today

A New Look at Retirement Today

Today’s retirees are changing the face of what retirement looks like. Being more active and living longer than any previous generation, baby boomers have been reshaping the world and every stage of life. Due to the large numbers attention is gained for both successes and failures. It is estimated that 10,000 boomers are reaching the age of retirement every day for the next 10+ years. What happens to baby boomers will impact the economy as a whole due to the vastness of these numbers.

As a result, financial shortfalls become amplified creating additional challenges or today’s retirees. The Social Security Administration, considers full retirement to be the age of 66 or 67, depending on the year you were born. This is the age where 100% of anticipated social security retirement benefits will be paid out. Unfortunately, millions of retirees are claiming early benefits at the age of 62, even though financially they have not saved enough for a secure retirement. Layoffs and health related issues are the primary reasons for early filings, even though it results in reduced payments of approximately 75% of full retirement benefits. Read more

Recent Changes in Social Security Payments: What You Need to Know Now for 2016

Recent Changes in Social Security Payments: What You Need to Know Now for 2016

Payout options for retirees are changing as early as December 31, 2015. The most recent budget session in Congress resulted in the elimination of two strategies that helped millions of seniors increase monthly income during retirement. These changes are implemented almost immediately, and can affect long term retirement strategies, as it applies to receiving social security payments. The two options of “File and Suspend,” and “File and Restrict,” have been eliminated.

These two strategies, when combined, helped couples gain thousands of dollars in additional funds during the early years of retirement. With 26% of retirees depending solely on social security funds, losing $24,000 or more in benefits could leave these families struggling. This is especially true for those close to retirement, but don’t hit the age requirements by the deadlines.

The good news is those who meet age requirements, will not be impacted by the changes. This adjustment to social security payouts is the second in the last five years and congress could just be getting started, given the threat of social security running out of money. It is expected that more changes are coming down the pipeline and future recipients are likely to carry the brunt of these changes. Read more