Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Why I Consider My Social Security Benefits to Be a Bonus When I Retire

Social Security generally provides a large amount of seniors’ income. Some seniors depend solely on such perks for financial assistance. However, I don’t plan to rely on retirement benefits. That doesn’t mean I won’t profit from the program. There are rumors that Social Security could soon run out of money, but the worst-case scenario is benefit cuts. These cutbacks will end the program. Despite this, I approach Social Security differently. I won’t depend on those benefits to entirely fund my senior living costs. I see Social Security as extra money. Why?

Social Security was founded with good intentions. However, it falls well short of expectations in current times when it comes to assisting elders alone.

The program was never meant to be seniors’ sole source of income. In the past, businesses gave pensions to long-term workers. Currently, the private sector has mostly abandoned this strategy. Individual employees must now save to supplement Social Security income.

The amount of your pre-retirement income that Social Security will replace will only be 40%. If you make more than the average, the percentage of your pay that your benefits will replace will be even lower than if you make the average. Retirees need 70 to 80% of their prior salary to live comfortably. As a result, relying heavily on Social Security may be a dangerous option.

I’ve also mentioned benefit cuts. If Congress doesn’t solve Social Security’s financial problems quickly, the scenarios above might happen in a little over a decade. If benefits are cut, they will replace less income.

Due to these and other circumstances, I won’t invest too much in Social Security. I also believe it’s necessary to be active in planning for the forthcoming event, which means I must work harder to save money for my 401(k).

I control how much I save. I can work more and make wise spending choices to save for retirement. I can’t depend too much on Social Security’s benefits since I can’t control its future.

Because of this, I find it easier to consider Social Security money supplementary rather than necessary for daily needs. I plan to construct a retirement budget that considers how much I may withdraw from savings and how much I can earn via part-time work.

If my Social Security payment is more than expected, I’ll have more money for my hobbies and interests. If I don’t use it all, I may gift it to loved ones or donate it.

But I don’t want to be worried about losing my benefits or having the program changed without my input. If I don’t rely on Social Security, the strain will ease. If you’re like most Americans, your retirement savings are several years behind. Knowing several “Social Security secrets” may boost your retirement income.

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Bio:
Mickey specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. His mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mickey’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

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