Are You Ignoring $900,000?
Hello, I’m Kevin - a financial planner who helps tech professionals and their families live great lives.
Make yourself at home - we’ll get to the importance of Social Security benefits in a moment.
But first - here are some links you may want to save for later.
Are You Less Behind Than You Think?
How Does a Couple Reach Financial Independence?
What Percent of Workers Max Social Security?
Now, let's get on to the vlog.
Viewer Requested
Someone who recently left T-Mobile and whose spouse still works with the company asked me the following:
Is it best practice to ignore Social Security benefits when planning for retirement?
No!
Social Security benefits are a big deal.
Assume a household will receive $3,000 per month in after-tax Social Security benefits.
Replacing that income might require a $900,000 portfolio!
1. Ignoring Them Can Reduce Benefits
Knowing how Social Security works may help a couple decide who works when.
2. Understanding Them Can Help Optimize Timing
Starting Social Security benefits at age 62 instead of age 67 could result in up to a 30% reduction in benefits every year for life.
Delaying Social Security benefits beyond the full retirement age increases the monthly benefits 8% each year delayed (up to age 70).
3. Ignoring Them Can Cause Someone to Work Longer Than Needed
It could take years or even decades to save the $900,000.
If someone dislikes their job, including the benefits in their financial plan might give them the flexibility to change their life.
4. Changing Them Rarely Happens and Takes Years
Simply increasing the full retirement age from 65 to 67 is scheduled to take 44 years!
Hey, thanks for learning more about Social Security benefits.
Just a reminder, I share a lot of resources that can help you.
Disclaimer
In addition to the usual disclaimers, neither this post nor this video includes any financial, tax, or legal advice.
