You Can Now Wait Until Age 72 to Take RMDs. Should You? The recent passage of the SECURE Act (Setting Every Community Up for Retirement Enhancement Act) has changed some long time rules related to retirement finances. One of them is that you no longer have to take RMDs (Required Minimum Distributions) at age 70. You can now wait until age 72. But is that a good idea? Find out here.
Plan to Work in Retirement? Know the Pitfalls Many older folks are planning to work during their retirement, either because they want to stay active or because they have not yet saved enough money. If you plan to work, then you need to know how your earnings will affect your Social Security benefits, your Medicare and your taxes. Get the facts here.
Four Outdated Retirement Myths For years, the experts said to pay off your home mortgage before retirement, tap 4% of your retirement savings during retirement, etc. Some of these long-held ideas no longer apply. So what should your plan be now? (This article is written for business owners but applies to everyone). Click here to find out.
Want to Claim Social Security Benefits at Age 62? It is a fact that most retirees claim their Social Security benefits at age 62, either because they need the extra cash or do not think that Social Security will last and it is better to get what they can while they can. Yet nearly 40% of people who claimed at 62 wish they had waited. Why? Find out here.
Should You Invest Your Social Security Benefits in the Stock Market? People generally accept that retirement is a time to start taking money out of retirement accounts to pay for living expenses. This is true, but retirement can also be a time to invest. But should you invest your Social Security benefits in the stock market? Get the scoop here.
How to Establish a Retirement "Paycheck" Just because you are retired does not mean that your expenses end. In fact, on a monthly basis, most retirees will spend at least 80% of what they spent when they were working. People who travel or have expensive hobbies often spend more. So how do you create a reliable "retirement paycheck?"
Watch Out for Scam Social Security Robo Calls It is no secret that robo calls are out of control, with some people receiving dozens a day. These automated calls want to sell you things you don't need, or worse, steal information from you. Now we find out that, according to the FTC, the Social Security Administration is the government agency most targeted by robo call scam artists. These criminals are out to get your Social Security number and try to scare you into giving it to them. How do you protect yourself?
Key Findings About Retirement
The Society of Actuaries' Committee on Post Retirement Needs and Risks and Pension Section recently conducted a study about retirement. Below are five of their key findings.
1) Most people retired not because they wanted the free time that retirement affords but rather because their work became too unpleasant or too difficult. They were not "pulled into" retirement as much as they "pushed out" of work.
Sometimes, the physical aspects of their job became too painful, but often it was the stress of the job that became too much to handle. Some people felt that their employer no longer valued them, but this was not the case for the majority of workers.
Other people, particularly women, retired to take care of a spouse or parent. A few people retired because they could not tolerate working for a 35 year old boss. Once in retirement, many missed the day to day work relationships that they had had.
2) The majority of recent retirees did not know if they could really afford to retire when the time came. Even those who worked with a financial advisor did not ask him or her if they had the financial resources to leave the workforce. Most retirees looked at their current bills to see if they could be paid using Social Security benefits, part-time work and pension distributions. If so, they retired. The effect that inflation will have on future income was not taken into account.
3) Most people retired without consulting anyone else. Married retirees tended to tell their spouse that they were going to retire instead of asking the spouse's opinion about the matter. Children and friends were rarely consulted.
4) The majority of retirees claimed Social Security benefits at the earliest age possible, age 62. Many understood that it is better to wait until their full retirement age to claim benefits, but they could not resist the extra income. They also had a "anything can happen" attitude and would rather enjoy the money now than wait to collect since no one knows what the future holds.
5) Most retirees said that they do not have a long term retirement plan because, again, anything can happen. Future money emergencies may arise, but they may not. People were more comfortable living in the present and dealing with financial problems as they occur.
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