Wednesday, August 18, 2010

SS your only retirement plan?

Again I was surprised by reading the following article.


75% of all young adults plan on relying on Social Security for retirement! That's a big percentage. The article isn't clear if it's their only source, but I really hope it's not. There will be no guarantee at what level of benefit will be available when you are eligible to collect social security.  Here's the some info from the SS web site:

If your full retirement age is older than 65 (that is, you were born after 1937), you still will be able to take your retirement benefits at age 62, but the reduction in your benefit amount will be greater than it is for people retiring now.

Here's how it works. If your full retirement age is 67, the reduction for starting your benefits at

    * 62 is about 30 percent;
    * age 63 is about 25 percent;
    * age 64 is about 20 percent;
    * age 65 is about 13 and 1/3 percent; and
    * age 66 is about 6 and 2/3 percent.

As a general rule, early retirement will give you about the same total Social Security benefits as full retirement over your lifetime, but in smaller amounts to take into account the longer period you will receive them.

I have read on many blogs and web sites about people making sure that they are getting max match contributions on their 401Ks from their employers and a lot about Roth IRAs. So I know people are thinking about retirement and saving beyond SS. You need to have a plan and understand how much you need or want to support you live style when you retire.

So what's your retirement plan?

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