All articles tagged with #retirement income
Originally Published 18 days ago — by Yahoo Finance
The article highlights five high-quality, safe monthly dividend stocks favored by Baby Boomers for generating reliable passive income to supplement Social Security, emphasizing the importance of dividend income for a secure retirement and noting the increasing popularity of monthly pay stocks and ETFs.
Originally Published 6 months ago — by CBS News
A $400,000 annuity bought at age 70 can pay approximately $2,400 to $2,900 per month, depending on factors like gender, type of annuity, interest rates, and optional features. The payout is higher for males and single life annuities, and current elevated interest rates favor new buyers. However, annuities are complex products with trade-offs, so careful consideration is advised before purchase.
Originally Published 7 months ago — by CBS News
A $400,000 annuity can provide monthly payments ranging from about $2,200 to over $4,100 depending on factors like age, gender, and annuity type, offering a stable income stream for retirement but with considerations such as liquidity, inflation, and tax implications.
Originally Published 1 year ago — by The Motley Fool
To maximize Social Security benefits, everyone should regularly check their estimated benefit amount through their mySocialSecurity account. This simple step helps in planning retirement finances by understanding how much income will need to come from other sources. Despite concerns about Social Security's future due to a cash shortage, the program is not expected to go bankrupt, though planning for potential benefit cuts is advisable.
Originally Published 1 year ago — by USA TODAY
If you're considering retiring at 70 and claiming Social Security, you could receive a maximum monthly benefit of $4,873, but this requires a 35-year history of high wages meeting or exceeding the annual Social Security wage cap. Delaying your filing until 70 can result in an 8% increase in your monthly benefit for each year beyond your full retirement age, providing a permanent boost to your income. Even if you're not eligible for the maximum benefit, delaying your filing can still significantly improve your retirement finances. Working longer and increasing your wages at the end of your career can further enhance your monthly benefit, making it a wise move for those needing Social Security to cover the bulk of their senior living expenses.
Originally Published 1 year ago — by Yahoo Finance
Early retirees need to consider three key facts about Social Security benefits before making a decision. Claiming benefits before full retirement age results in a lower benefit and limits the chance to earn delayed retirement credits. Additionally, not having 35 years of work history or working exactly 35 years could shrink benefits. Finally, going back to work after claiming benefits may result in a reduction of Social Security income, with earnings limits in place until full retirement age.
Originally Published 2 years ago — by CNBC
In 2024, retirees will see a 3.2% cost-of-living adjustment (COLA) to their Social Security benefits, resulting in an average monthly increase of over $50. However, the actual benefit amount will be affected by higher Medicare Part B premiums, which will rise by $9.80 per month, and the potential taxation of benefits depending on combined income levels. Additionally, those who work while receiving benefits may face an earnings test, which could withhold some benefits if earnings exceed certain thresholds. These factors are crucial for retirees to consider when planning their income for the year ahead.
Originally Published 2 years ago — by GOBankingRates
The average income of someone aged 65 and older in 2021 was $55,335, with average expenses of $52,141 per year or $4,345 per month, according to the Bureau of Labor Statistics. Younger retirees had higher expenses than older retirees, with those aged 65-74 spending $4,870 per month and those 75 and older spending $3,813 per month. Retirement experts recommend using the 80% rule, which suggests using 80% of pre-retirement income to cover expenses in retirement. The biggest retirement expenses are housing, transportation, healthcare, food, and utilities. It's important to consider individual spending habits and current expenses when planning for retirement.
Originally Published 2 years ago — by CNBC
Many pension-eligible workers, including public employees, are unaware of the complex Social Security rules that can reduce their benefits. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) are two rules that affect workers who receive pensions from jobs where they did not pay into Social Security. These rules often come as a surprise to retirees, leading to financial difficulties and adjustments in their standard of living. Congress is considering the Social Security Fairness Act, which aims to eliminate both the WEP and GPO. In the meantime, affected workers must navigate the complicated rules and may face benefit overpayments due to incorrect or incomplete information. Experts suggest reviewing Social Security statements regularly and tracking personal earnings and pension benefit information to ensure accuracy.
Originally Published 2 years ago — by Fox Business
A recent survey by Nationwide reveals that a growing number of older adults have no retirement plan beyond Social Security, with 21% of adults aged 50 or older relying solely on Social Security income, up from 13% in 2014. The survey also found that more respondents doubt they will receive their full Social Security benefits, with 75% believing that Social Security will run out of funding in their lifetime. Additionally, only 8% of respondents understood how to maximize their Social Security benefits. Misconceptions about Social Security were prevalent, including misconceptions about the full retirement age and the impact of filing early. Younger Americans were less optimistic about Social Security, with many believing they won't receive any benefits and planning to continue working in retirement.
Originally Published 2 years ago — by Fox Business
Experts emphasize the importance of early retirement planning to ensure a comfortable future. Bank of America's 12-step guide provides advice for each stage of life, including taking advantage of employer-sponsored retirement plans, saving more in tax-advantaged accounts, setting up legal documents, estimating future lifestyle costs, understanding income sources during retirement, recognizing potential risks, planning for legacy and wealth transfer, understanding healthcare costs, deciding on a Social Security withdrawal strategy, staying up to date with required minimum distributions, and regularly reviewing financial matters. The goal is to have a well-rounded financial plan that covers essential and discretionary expenses and provides protected income to meet basic monthly needs.
Originally Published 2 years ago — by Seeking Alpha
The normalization of interest rates presents a rare opportunity for retirement-minded investors to build meaningful income-producing portfolios. The prolonged period of declining interest rates is now reversing, creating compelling income investment opportunities that have not been attainable for decades. The article suggests reallocating from a traditional 60/40 stock-bond allocation strategy to a shorter duration, more inflation-tolerant portfolio allocation of 25% cash, 25% commodities, 25% stocks, and 25% bonds. It also highlights five high-yielding investments, including Antero Midstream Corporation, Energy Transfer LP, Kayne Anderson, GAMCO Global Gold, Natural Resources & Income Trust, and Templeton Emerging Markets Income Fund. The author argues that the overvaluation of the S&P 500 and the inverted yield curve make the traditional 60/40 strategy appear overly aggressive in today's market.
Originally Published 2 years ago — by Fox Business
A recent survey by Allianz Life revealed that 74% of Americans no longer consider Social Security a reliable source of income in retirement, and 88% believe it is critical to have another source of guaranteed income beyond these benefits to have a comfortable retirement. The survey also found that inflation and rising costs are causing concern for Americans, with 78% citing this as a concern, and 66% worried that it will be too late to have a comfortable retirement if they don't increase their retirement savings soon. Gen Xers were found to be the most worried about their long-term financial stability and retirement.