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Social Security and Your Retirement

October 12, 2022

Many people hardly think about pre-retirement planning until they're a few years away from retirement. According to a recent survey, 49 percent of Americans between 55 and 66 have zero personal retirement savings.

But pre-retirement planning is essential to have a comfortable retirement. This is especially true if you plan to rely at least partially on Social Security benefits. In this post, we'll cover what pre-retirement planning is, how to do it, and the role Social Security plays in your retirement.

What Is Pre-Retirement Planning?

Pre-retirement planning refers to the steps you take to prepare for retirement. This includes estimating how much money you'll need to cover your expenses and saving and investing for retirement.

Pre-retirement planning also involves figuring out when you want to retire and how you'll generate income in retirement. For example, will you downsize to a smaller home? Or will you continue working part-time?

Why Is Pre-Retirement Planning Important?

Pre-retirement planning is essential because it gives you a better chance of achieving your retirement goals. By saving and investing early, you'll have more time for your money to grow. This can make a big difference in the amount of money you have in retirement.

Pre-retirement planning is also important because it can help reduce your stress about retirement. According to a recent poll, 49 percent of Americans are worried that they're not financially prepared for retirement. But pre-retirement planning can help ease your anxiety by giving you a better understanding of your financial situation and what you need to do to retire comfortably.

Getting professional help with pre-retirement planning is smart when you're getting close to retirement. A financial advisor can help you avoid most retirement pitfalls, including underestimating how much money you'll need in retirement and not having enough diversification in your portfolio.

The Role of Social Security in Your Retirement

Social Security is a government program that provides income for retired workers and their families. The amount of your Social Security benefit is based on your earnings history.

For most people, Social Security benefits will replace about 40 percent of their pre-retirement income. So, if you're planning to rely on Social Security benefits in retirement, it's crucial to understand how the program works and how much income you can expect to receive.

You can start receiving Social Security benefits as early as age 62. But, if you wait until your full retirement age, you'll receive a higher monthly benefit.

You can also choose to delay receiving benefits past your full retirement age. Each year you do this, your benefit will increase by about 8 percent.

Take Control of Your Retirement Today

Planning for retirement is one of the best things you can do today. It can take away a lot of stress and anxiety about the future and help you achieve the retirement lifestyle of your dreams.

If you're getting close to retirement and haven't started pre-retirement planning, it's not too late. By taking some simple steps now, you can take control of your retirement and make sure you have the income you need to live comfortably. Contact us today and start the journey to a secure retirement.