Money Monday: Learn more about when to collect your Social Security benefits
Well, today on Money Monday, we’re going to dive into a question that anyone approaching retirement age will have to deal with sooner or later. When will you receive Social Security? The government says you can start collecting benefits anytime between the ages of 62 and 70. But there are some questions to ask before making that decision. And here to break it all down is Carter Romo of Daiichi Financial Bank’s Yellow Cardinal Advisory Group. Thank you very much for your participation. Thank you, everyone. I’m very happy to be back. It’s a pleasure to meet you again. Okay. Let’s talk first. During the break, I mentioned that this was one of them. Do I really think I’m ready once I start a little closer to that age? When I was 20 or 30, I thought I was ready, and now I’m almost there. So what are some of the first steps people should take as they approach retirement? I think the first and most important thing is to really understand the details of how much your life costs. . How much do you actually spend? And think about how things that may increase in retirement, such as transportation costs, and things that may decrease, such as commuting, will change as you prepare for retirement. But once you understand how much it really costs to live your life, it becomes the basis for everything that happens next. The numbers can be scary, but the good news is that with good, high-quality online banking tools and online credit card reporting, it’s easier than ever. Bringing that data together has never been easier. Yeah. And Mr. Carter, many of you are wondering what role Social Security plays in the big picture of retirement? Our generation has always been told that we probably won’t have Social Security. But what does that look like for different people who are preparing for retirement? Well, for most people, it’s definitely the foundation of a successful retirement and peace of mind. It’s what it brings. Overall, the program envisages that benefits will replace about 40% of the income people received when they were working. This is because people spend a little less in retirement than they did during their working years. In most cases, about half of your retirement income tends to come from Social Security. This program is indexed to inflation. Not affected by market cycles. There is no risk. That’s really amazing. I would now like to move on to the issue of funding. We’ve all heard horror stories about how such things don’t exist. However, the first year the program is currently expected to run out is 2035. Even if that happens, more than 80% of promised benefits are expected to be paid. So what happens to us? You know, the worst case that we all face is cuts, but not cancellations. I think it’s important to keep that in mind. It’s true that you can be sure you’re there, at least to a significant degree. Well, now you can calm your nerves at least a little. Mention when you should start filing Social Security claims. Because that’s the big question for me. You know, we’re in the television business. You may not be able to work until you are 65, right? So should you claim it at 59.5 or try to push it away? Well, that’s great. This is my personal thing. Get personal financial advice from me and talk about it. Of course, the earliest you can receive benefits is 62 years old. The age at which you stop receiving increased benefits is age 70. Benefit increases range from 5% to 8% per year. After age 62, wait to claim your claim each year. Therefore, if you are confident in your health and the period in which you will receive benefits and are in a position to continue working and be happy with it, or if you are able to receive benefits in other ways, then the first part of your retirement , the first general advice we give our clients when it comes to their finances, which I’m sure they receive from other good advisors, is that if they can wait until they’re closer to 70, they should. is. What are some mistakes people make during this process? Unfortunately, I think the biggest problem is assuming they can retire on the schedule they planned. There are many people who say, “I will work until X years” or “I will work until I am 65.” But some very interesting studies have shown that people, especially those who retire at age 61 or 62, tend to retire at about age 20. 2 to 3 years earlier than planned. And for many people, that tends to look like a plan to retire from work at age 65. However, they actually retire at age 62. So the end result is some version of a plan that works for you, a baseline. Even if you end up retiring a little earlier than planned, make a plan. Okay. Carter, Rommel, thank you so much. These tips will be posted on the WLWT website. dot com if you missed something. T.H.
Money Monday: Learn more about when to collect your Social Security benefits
Updated: October 28, 2024 4:25pm EDT
In the latest edition of Money Monday, WLWT looks at the questions everyone has had as they approach retirement. “When will I receive Social Security? The government says people can start receiving benefits anytime between the ages of 62 and 70, but there are some questions to ask before making that decision.” Should. On Monday, WLWT was joined by Carter Ramle of First Financial Bank’s Yellow Cardinal Advisory Group to discuss this decision. Watch the full interview in the video player at the top of the article.
Cincinnati —
In the latest edition of Money Monday, WLWT examines the question everyone nearing retirement has: When will I receive Social Security?
The government says people can start collecting benefits anywhere between the ages of 62 and 70, but there are some questions to ask before making that decision.
On Monday, WLWT was joined by Carter Ramle of First Financial Bank’s Yellow Cardinal Advisory Group to discuss the decision.
Watch the full interview in the video player at the top of the story.
