PREPARING FOR RETIREMENT INCOME
WHERE DO I APPLY? Apply for your benefits about three months before the date you’d like them to start. You can apply online at http://ssa. gov/planners/about.htm. You also can call (800) 772-1213 or TTY (800) 325-0778, or visit your local Social Security office (call first to make an appointment.)
According to the “2019 Retirement Confidence Survey” by the Employee Benefit Research Institute, 33% of pre-retirees report feeling not too or not at all confident about their financial security in retirement.17 To help you prepare for a possible reduction in Social Security benefits and/or an overall shortfall in your retirement income, calculate the general amount of income you expect to need in retirement. Add up your monthly expenses and factor in a 2.5% inflation rate (the annual inflation rate for the U.S. for the 12 months ended January 2020).18 If the retirement age increases in the future, you may be able to continue working and delay your own retirement. However, if you need to retire before the full retirement age, you’ll need to factor in the potential for reduced Social Security benefits during those years. You may receive a personalized estimate of your Social Security benefits by using the online Retirement Estimator at http://ssa.gov/ estimator. Once you’ve identified your level of benefits, subtract this amount from the total income you’ve calculated that you need. The balance will give you an idea of the amount that would need to come from other sources. (Please note, this is a general calculation and not intended to be the sole basis of any financial decisions.)
:9: This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency. 17 EBRI. 2019. “2019 RCS Fact Sheet #1: Retirement Confidence.” https://www.ebri.org/docs/default-source/rcs/2019-rcs/rcs_19-fs-1_confid. pdf?sfvrsn=c6553f2f_4. Accessed Feb. 29, 2020. 18 U.S. Inflation Calculator. “Current US Inflation Rates: 2009-2020.” http://www.usinflationcalculator.com/inflation/current-inflation-rates/. Accessed Feb. 29, 2020. This document is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation. This content is not endorsed by the Social Security Administration, and our firm is not affiliated with the United States government or any other governmental agency.
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