Planning for a Social Security Shortfall....

| April 29, 2013
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Social Security offers a retirement benefit to US workers and their spouses.  Some may start collecting their Social Security benefit as of age 62, which would be considered early retirement.  Others may wait until they reach full retirement age of 65 to 67 (depending on their year of birth).  The benefits an individual receives is based upon the income they earned over the course of their (or their spouses) working life and is subject to a maximum monthly amount.

What most individuals don't realize is that Social Security was not designed to be a retiree's sole source of income.  The maximum benefit for a person that retired in 2012 (at the full retirement age of 66) was $2,513 per month.  Therefore, it is extremely important to plan for retirement by preparing to supplement Social Security.

Here are some strategies you may want to review with your professional advisors:

  • Contribute to your employer-sponsored retirement plan, such as a 401(k)
  • Open a Tradional Individual Retirement Account (IRA)
  • Evaluate a Roth IRA
  • Purchase an Annuity 

The above list outlines a few ways you may choose to supplement your Social Security benefits.  In order to evaluate and find the best vehicle to meet your needs, feel free to contact our knowledgeable team members at 617.965.7777 or you can email us at info@castlehillfinancial.com.

 

When Should You Take Social Security

Monthly Social Security payments differ substantially depending on when you start receiving benefits.

 

*Tax advice and accounting services are offered independently of Equity Services, Inc. (ESI).  ESI, and any companies affiliated with ESI, are not sponsoring, are not responsible for, and make no warranties or representations as to the CPA's right to or competence to practice accounting.  Anyone dealing with the CPA assumes the entire risk of dealing with the CPA in connection with the practice of accounting or providing tax advice.

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