Maybe you’ve just turned 65, and you’re wondering about retirement. Maybe you’ve already picked a date, and you’ve got it circled on your calendar. Or maybe you’re dreaming about retiring early. But there’s one big question on your mind: How old do you have to be to collect Social Security benefits?
If you’re thinking about retiring, one of the big questions you’re asking yourself is, “When can I retire?” While there are a lot of things to consider when making a decision about when to retire, one of the big factors can be Social Security.
While most people will collect their Social Security benefit out of necessity, you might be one of the lucky few that doesn’t need to. Maybe you’re a big saver, or made a lot of money during your career or perhaps you’ve inherited some money. Whatever the reason, you’re living comfortably in retirement. So have you thought about what to do with your Social Security benefits?
Americans often worry about their retirement. It’s a known fact that Americans aren’t saving for retirement as they used to, due to higher debt, costly mortgages, little or no wage growth, and a higher cost of living. And as employer-funded pension plans become scarcer in the business environment, most people are forced to fend for themselves. Without adequate savings, many will have to rely solely on Social Security for their retirement income. But will it be enough?
For eligible Americans, Social Security benefits are an importance source of retirement cash flow.
As with anything the government is involved in, Social Security is complex and confusing, surrounded by red tape and bureaucracy. There are over 70,000 scenarios for claiming these retirement benefits, and the new sweeping changes to its regulations don’t make it any simpler.
Making the transition to retirement is a huge life step for anyone. For many, making the adjustment to retirement can be difficult, as they shift from being a busy worker to enjoying a much-deserved rest from the daily grind.
In fact, many people have anxieties about their retirement, wondering if they’ll end up running out of money in retirement. They worry about their 401k, IRA, and other key retirement savings accounts.
Sadly, the risk of running out of money in retirement is all too real. Lifespans are increasing, meaning that retirees are having to stretch out their retirement savings further than previous generations.
While there’s no way to 100% guarantee that you won’t run out of money in retirement, there are steps you can take to minimize your risk, such as making sure that you include the following in your retirement portfolio:
For most Americans, Social Security will be the single largest part of their retirement portfolio, their primary source of income after they leave the working world behind to enjoy their golden years.