Retirees Need To Take Charge Of Their Retirement In.e And

To get the most for your buck, you need to take charge of your in.e and expenses; maximize the former and minimize the latter. Knowing the statistics of retirement can help you understand where you stand .pared to others. This article shows how retirement in.e, statistically, breaks down between different in.e sources. Afterwards, I warn you how to take charge of your in.e and expenses. 1. Retirement in.e statistical breakdown: The three retirement in.e sources are made up of social security, pension, and savings. With so many retirees ‘under-funded’ for retirement, you may want to do some part-time work to supplement your ‘retirement’ in.e. According to the Social Security Administration, more than 9 out of 10 individuals – age 65 and older – receive Social Security benefits, but most retirees also rely on other sources of retirement in.e. A 2006 statistical breakdown for the percentage of in.e from each source was: * Social Security – 38.6% * Pensions – 19.7% * Savings and Investment – 12.6% * Work Earnings – 26.3% * Other – 2.7% In 2007, the maximum possible social security in.e was $2116 per month for those waiting until their full retirement age (FRA). However, whatever your FRA benefit is, it’ll be permanantly reduced if you begin your benefits early – between age 62 and your FRA. And then it’ll be temporarily reduced further if you earn above a Social Security-defined threshold in.e while you’re under your FRA and receiving benefits. Your defined benefit pension will probably give you a fixed in.e. But, perhaps, your pension has a cost of living adjustment (COLA)like Social Security. Your savings are .posed of your regular investments and bank accounts as well as what you have in your defined contribution plans like your 401(k)and IRA. You’ll want to choose the best way to convert these savings into an annual in.e. Possibilities include converting them to an annuity, or into another an IRA, or Roth IRA. And then devising your own annual withdrawal procedure that’ll ensure that your savings will last as long as you do. 2. Control your expenses: Some advisors say your retirement expenses can be covered .fortably by about 75% of your pre-retirement in.e. This, of course, assumes that some 25% of your pre-retirement in.e went to work and its associated taxes, transportation and clothing costs as well as contributions to retirement savings. I think you can lower your expenses much more than this. But you must make a concerted effort to do so while still having an enjoyable retirement. Controlling your expenses helps prevent them from robbing too much of needed in.e. You can categorize your expenses under essentials, debts, taxes, and enjoyment. Essentials cover your food, housing, and transportation. You often can find inexpensive alternatives to your housing and transportation costs. Debts such as mortgage, car, and credit card payments should be reduced as much as possible. Paying off these loans is often the best way to handle them. Taxes are pretty much dependent on how you choose to handle your distributions from savings and what tax category your savings are in – i.e. tax deferred, taxable or tax free in the case of as a Roth IRA. Part-time work can produce a very high penalty on Social Security benefit you begin receiving before your FRA. But working in.e won’t diminish your Social Security benefits after you reach your FRA. With your expenses minimized, you can better plan on the travel and other enjoyments you’ve set aside for your retirement years. About the Author: 相关的主题文章: