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