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By following these procedures, you may establish a solid foundation for your financial future in retirement.
It’s time to start planning your money for 2023 as 2022 winds up. No matter how close you are to retirement or how many years you have left in the workforce, there are some Social Security decisions you must make. These measures won’t take long, but they can ensure a more secure financial future in old age.
1. Establish the age at which you can fully retire
At FRA, you can collect 100% of your benefit amount based on your lifetime of work. For example, a person’s FRA is 67 if born in 1960 or after. So, if you were born before 1960, you can anticipate retiring at 66 or 66 plus a specific number of months.
Benefits can be started as early as age 62, but they are reduced by 8% per month until the full retirement age is reached. However, you can receive a monthly bonus on top of your regular benefit payment if you wait to start collecting until after your FRA (up to age 70).
Knowing your FRA can help you settle on a claiming age that works best for you. Knowing your FRA can also help determine when you can retire and apply for Social Security.
2. Verify your estimated benefit amount
Years before you retire, you can still get a rough idea of your benefits. First, you can log into your Social Security account online and review your most recent online statements. Then, by entering your actual salary history, you can calculate a reasonable estimate of your future pension.
Consider that this sum is predicated on your submission at your FRA. As a result, depending on whether you start getting benefits right now or wait, your benefit amount could decrease or increase. The amount of your pension may also alter if you have several years to go before retiring, depending on your future salary.
3. Review your finances
Knowing your estimated Social Security benefit amount might help you plan for retirement on a more secure financial footing. You can next evaluate your savings to determine if you have enough to supplement your Social Security income and live well in retirement. You might have to increase your savings rate if you discover that your Social Security benefits will be lower than anticipated.
Even if retirement is decades away, it is wise to prepare now. If you discover that you will need to dip into your savings more than anticipated, giving yourself additional time to save will make it much simpler to get to your goal.
A wonderful time to evaluate your financial situation is at the beginning of the year and make any required changes to your retirement plans, investing strategy, and savings goals. If you take these three steps, you may enter 2023 with as much preparedness as possible.
Most seniors are entirely unaware of the $18,984 Social Security bonus.
Many Americans are years behind in saving for retirement. However, knowing a few “Social Security secrets” could increase your retirement savings. One simple strategy, for instance, may result in an additional $18,984 in annual income. In addition, you’ll be able to retire stress-free after you understand how to optimize your Social Security payments.
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected]