Economic times have been tough for everybody-especially the baby boomer. In a recent survey, almost have of Americans say they will begin collecting Social Security at age 62. Most boomers share the notion of “It’s my money, why not take it now”. Where as others feel by waiting till normal retirement age to collect the full benefit is the answer.
Boomers Relying Too Much on Social Security?
Currently, Social Security represents over 1/3 of an an average retiree’s income. Almost 37 percent to be exact. With many soon to be retirees on the verge of turning 62 and collecting their checks, many experts feel that many are too dependent on those checks to get them through retirement. Unfortunately, many retirees have underfunded their retirement plans, and this leaves them with no other choice.
Have to Pay the Bills
If a retiree elects to defer to 66 to collect their first check, they will expect a 7% annual increase on their money. Try and get that in the stock market or at your local bank! But most boomers just can’t wait. Hard economic times are forcing them to collect their checks now and pay for required living expenses. The reality is although knowing that the check will be bigger down the road, somebody has to pay for the utility and food bills in the present time. That “somebody” is their social security check.
How Much Is Your Check
Surprisingly, those expected to have their Social Security check represent half of their retirement income didnt’ even know how much their check was going to be. More than 3/4 of those planning on taking Social Security at 62 don’t even have an income or financial plan in place.
Do Some Planning
Retirement is one of the most important time of your lives. Be sure to sit down with a planner and make sure you have a map in place. You wouldn’t go on a long trip without a map, would you? Well, retirement is the longest trip of your life. Got it?
Other Good Reads:
Go To Retirement: Reason to Delay Taking Social Security to Age 70
Consumer Commentary: The Mythical Demise of Social Security