Although most people expect Social Security to be there for them when they retire, they could be wrong – and sadly, it might be too late for their nest egg.
Many older Americans rely heavily on Social Security as their major source of income, but demographics are not in our favor as fewer workers support more retirees. In 1950 there were 16 workers per Social Security recipient. By 1960, that ratio had dropped to five workers per recipient. By 2033, only 2.1 workers will support one retiree and Social Security is projected to then run out of money. Once that happens, benefits will be paid from tax revenue collected, but retirees should expect to receive only about 75% of the benefits they would have received.
The Best Way to Increase Your Benefits
For each year you wait to claim Social Security benefits, up until age 70, you will boost your annual payouts by 8%. Waiting until you’re 70 will give you 32% more in benefits than if you took them at 66 and 76% more than taking benefits at 62. If you can afford to delay benefits until age 70 and if you live past 82, you will receive more in lifetime income from Social Security than if you had waited until full retirement age.
Getting More Income at Retirement
Taking a part-time job may be a possibility upon retirement from your full-time career, but it isn’t the smartest way to add income. There may be stocks, but trying to beat the market later in life becomes riskier. Dramatic market swings could be tough to make up. Some life insurance products provide a straightforward strategy that people are already using to get more income in retirement and provide peace of mind. To access more information regarding the financial opportunities that may be available to you, simply request more information. The more you know, the more options you have to build a solid nest egg.
Source: Insights & Answers by Ryan Howison-John Hancock Financial Network 8/23/2016