Planning for retirement is supposed to be exciting.
But if you don’t have enough money saved up, you could be in for a rude awakening.
Many Americans — upward of 54 percent — have little to no idea how much money they will need for retirement.
They think that Social Security benefits will be enough to carry them through while they sip Mai Tais by the beach and take leisurely strolls through their home garden.
But that’s not quite true.
In fact, there are many facts about Social Security that may shock you — including the fact that the average American receives only $1,300 per month from Social Security benefits.
That equates to roughly $16,000 per year — an amount that puts you only slightly above the poverty line.
Is this enough for you to live comfortably in retirement? Not likely.
That’s why Tactical Wealth is here to help. Our Social Security optimization strategies, when coupled with a fixed income investment, can help you get more out of your benefits so that you can retire with peace of mind.
Keep reading to learn more and contact us to get help from an expert when it comes to your retirement income strategies.
Social Security Basics
Let’s start with some of the basics.
Social Security is, of course, a government program that is designed to provide income to working Americans who have earned the right to retire.
However, this perk isn’t just given to anyone, anywhere, at any time. There are certain qualifications that must be met.
In fact, you must earn a certain amount of credits — 40, to be exact — over the course of your working career in order to be eligible to receive Social Security benefits.
One can earn a maximum of four work credits per year, meaning there is a 10-year minimum employment requirement before anyone is eligible to receive benefits.
How are these credits accumulated? It’s really quite simple. Work credits are earned as you accumulate income. In 2017, for example, one work credit is equivalent to around $1,300 of earned income.
The next thing you need to know is that you don’t automatically start receiving your Social Security benefits on the day that you retire.
In fact, there are limits on when you can start receiving your benefits. While you are technically eligible to receive Social Security payments at age 62, you need to be sure of your “full retirement age” — determined by the year you were born — before you can start reaping the full extent of your benefits.
Additionally, you should also be clued in on the fact that you can earn delay credits — that is, extra money if you decide to wait — up until age 70.
Finally, there are extended Social Security benefits for spouses, widows, children that you need to be fully aware of before you retire. Learn more about how to optimize your various Social Security benefits today.
Social Security Stats
Before you dive right in, there are a few important stats about Social Security that you need to know and understand.
Here are just a few:
- 61 million people are currently receiving some form of Social Security payment each month. That includes more than 41 million retirees.
- 61 percent of retired workers rely on Social Security payments to make up half (or more) of their monthly income. That puts retirees at a significant disadvantage when it comes to living comfortably.
- 67-years-old is now the full retirement age (FRA) for working Americans who were born after 1960.
- 8 percent annual credits are available to those who delay their payments until age 70.
The fact of the matter is, you can’t rely solely on Social Security to provide you with income in retirement. That is, if you want to live a comfortable lifestyle.
Contact Tactical Wealth to learn how Social Security optimization can help you earn more, live better, and retire comfortably.
What We Do
Tactical Wealth offers resources to help with retirement income strategies, high-return investments, and more. Our team is dedicated to providing education and options for you to achieve financial peace of mind.
Whether it’s with our Fixed Income Fund our our Social Security optimization, we can help you explore all of your options and make the right decision based on your situation.
Contact Tactical Wealth today to get started.