Retirement: Create a Social Security and retirement date strategy

If you want to carefully plan your retirement, this article is a must-read. Here you will find out all the details related to the creation of a Social Security and retirement date strategy. Keep reading and discover all the details!

If you want to carefully plan your retirement, this article is a must-read. Here you will find out all the details related to the creation of a Social Security and retirement date strategy. Keep reading and discover all the details!

In the first place, longer life expectancies lead many people to consider working longer to continue building their nest egg. Postponing retirement may be beneficial because you can continue making contributions to your workplace retirement plan if you have one, or to a traditional or Roth IRA. What is more, you can give your assets more time to potentially grow and, in the case of traditional 401(k)s and IRAs, you'll also extend the period of tax deferral for your investments, or make a final push to contribute as much as possible and take advantage of catch-up IRA and 401(k) contributions if you're age 50 or over.

Secondly, the older you are when you file for Social Security benefits, the higher your annual payment until you reach age 70, when benefit increases cease. You can choose to take Social Security later, even when you retire.

Retirement: Create a Social Security and retirement date strategy

Also, most pre-retirees say they would like to include some work when they retire (although health issues or loss of a job could affect those plans). Working during retirement could help in many ways. 

On the one hand, if you extend your working years, you can continue to make retirement contributions, which could make a difference in the type of retirement you can afford. On the other hand, working even part-time in retirement can help you delay drawing income from Social Security and your own savings, allowing your funds to continue to grow.

Finally, with retirement typically lasting 25 or 30 years and beyond, it's important to create a retirement investment strategy that can convert your savings into retirement income. If you're looking for an investment vehicle that can guarantee an income stream for life, then you may want to consider annuities. Simply put, annuities could help ensure that you won't outlive your savings.

Related Articles

More News

More News