Social Security benefits

The Hidden Dangers of Pension Buyouts: What Retirees Must Know

In the past, retirees could rely on a combination of a pension, Social Security, and personal savings to navigate their golden years comfortably. However, the landscape of retirement planning has significantly changed. The number of workers with employer-provided pension plans has drastically decreased from 27.2 million in 1975 to just 12.6 million in 2019. This shift necessitates a new approach to retirement planning, focusing on creating alternative income sources. The Evolution of Pension Plans Pension …

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Get the Most Out of Social Security: Age Requirements Explained

The question of when to apply for Social Security benefits is tricky. Of course, the short answer is that you become eligible to start taking benefits when you turn 62, but there might be better times to tap into those benefits. When To Apply For Social Security Your age is one of the most critical factors in deciding when you should start taking benefits. However, be sure you know other vital points to consider before …

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Wake-Up Call: The 3 Overlooked Realities Facing Every Retiree

Retirement, though meticulously planned for, often arrives with unexpected realities that can challenge even the most foresightful individuals—these significant life transitions usher in a whirlwind of alterations to one’s daily life and finances. Some retirees have to adjust to specific pivotal changes such as downsizing living spaces, budgeting with a tighter income, and dissociating personal identity from professional roles. However, the evolution doesn’t end there. As retirement approaches or if you’re already at the cusp …

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From Saving to Spending in Retirement: Are You Prepared?

For countless Americans, diligent saving and financial planning marks the journey toward retirement. After years of building a robust financial foundation, the transition from saving to spending that hard-earned nest egg can be daunting. What was once a period of anticipated relaxation can quickly become a time of financial stress. The Challenge of Transitioning A seasoned financial planner, Andy Baxley, notes the irony: “It’s disheartening to enter the initial years of retirement only to be …

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Government Shutdown Looming: 4 Must-Know Survival Tips for Retirees

Navigating through a government shutdown can be a daunting task, especially for retirees who might be on a fixed income. A government shutdown will transpire if Congress doesn’t pass the necessary appropriations bills to fund government operations by October 1, marking the onset of a new fiscal year. Even a partial enactment of these bills can lead to a partial shutdown, which can have far-reaching effects. A shutdown will affect you at some point.  Here …

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Want to Retire in 2024? Here’s What You Need to Know.

Embarking on the retirement journey is a monumental step. However, diving headfirst into this new chapter without laying the proper financial groundwork can lead to a myriad of unforeseen challenges and obstacles. It’s essential to approach this milestone with both excitement and prudence, ensuring a smooth transition into your golden years. For those looking at 2024 as their year to retire, there are three pivotal things you must know. 1. Your Financial Milestone There’s no …

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New Study Reveals the Surprising Best State to Retire In – You Won’t Believe the Result

The recent findings from a new Bankrate study challenge the conventional wisdom of retiring in sunny Florida, suggesting instead that a Midwestern state might offer better financial prospects for retirees. While warm weather has been a popular choice for many Americans in their golden years, the study indicates that opting for a Midwestern state like Iowa could be kinder to one’s wallet. In their quest to identify the most favorable retirement destinations, Bankrate thoroughly examined …

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Countdown to Crisis: Unveiling the Threat of a U.S. Retirement Age Increase on Your Precious Savings

The recent decision by the French government to increase the official retirement age from 62 to 64 has sparked global discussions and concerns. This move met with significant opposition, has led many to wonder what would happen if the U.S., which already has one of the highest retirement ages for full benefits, followed suit. The Impending Retirement Crisis in the U.S. The U.S. is on the brink of a retirement crisis. With Baby Boomers and …

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Unlocking the Secrets of the Perfect Savings Recipe for Social Security Supplementation

To ensure a comfortable retirement, it’s essential to have savings in addition to relying on Social Security. But how do you determine the ideal amount of savings you should aim for? It is widely known that depending only on Social Security benefits is not recommended since these benefits usually only replace approximately 40% of your income before retirement. However, this figure assumes an average income and benefits won’t be significantly reduced when Social Security’s trust …

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Are You Falling Into A Hidden Tax Trap By Delaying RMDs?

Congress has recently expanded a tax trap that affects individuals with traditional IRA and 401(k) accounts by enacting the SECURE Act 2.0 in December 2024. This law has pushed back the age at which required minimum distributions (RMDs) must begin, delaying it to age 73 starting from January 1, 2023. Subsequently, the starting age will increase to 75 starting from January 1, 2033. If you already take RMDs before 2023, these changes do not impact …

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