Social Security Planning
The biggest story in Social Security today concerns the large number of baby boomers set to retire over the next 20 years and the relatively smaller younger generations feeding Social Security payroll taxes into the system. On average, today’s seniors are living longer than any previous generation. While that’s good news, it also presents several new challenges. A longer life increases the likelihood that you’ll have increased medical and long-term care expenses throughout much of your retirement. This is particularly true if you’ve been active all of your life – as many of today’s baby boomers have been.
Furthermore, the value of your nest egg could be more significantly impacted by increases in the cost of living over a longer term. Quite simply, you could outlive your savings. When you consider all of these factors, it is important to make informed decisions about when to begin receiving Social Security benefits within the context of your overall retirement income strategy.
Other sources of retirement income, such as pension plans, 401(k) plans, IRAs, annuities, tax-exempt and taxable securities should be carefully evaluated in light of various factors. For example, generating a reliable fixed income versus variable, at-risk income. You may want to consider speaking with a financial advisor or insurance agent to help develop a retirement income strategy before you apply for Social Security benefits.
There are strategies you can employ to help reduce the risks of outliving your money. These strategies may be directly related to when you start taking Social Security benefits and how you should consider positioning assets for a surviving spouse.
Contact us today to set up your free Social Security Review to determine the best strategy available to you.