Waiting to take Social Security retirement benefits is generally a wise decision. For many seniors, it could increase their monthly payouts by 8% each year that they defer the benefit.
However, Financial Planning’s recent article, “The 1 reason not to delay Social Security,” says that there are a few exceptions to the rule.
For example, retirees should think about claiming Social Security as soon as they can, if they’re in very poor health or have a terminal illness.
While the benefit will be less if they file early, the greater number of individual payments will help offset the smaller benefit amount.
There are three ways that women can plan for a better retirement. Women should not rely solely on their spouses when planning for retirement. Instead, they should more directly participate in how they’ll secure their senior years. That’s because many of them are likely to live longer than their partners, according to an article from MarketWatch. Women should calculate the amount of income they anticipate receiving in retirement and consider other income streams.
In addition, they can talk about their estate plans with their spouses and family members and look for alternative income sources. One example is an immediate annuity. In the right circumstances, they can be a terrific strategy to improve one’s retirement prospects.
Remember that despite not having a 401(k), individuals can still save for retirement. Workers who don’t have the option of a workplace retirement plan, should ask their employer to set up one on the basis of incentives that the company will receive.
These workers can also look into opening a health savings account and an individual retirement account, preferably a Roth IRA, which offers tax-free growth on savings and penalty-free early withdrawals.
They also can choose to switch their status to a 1099 from a W-2 employee to establish a SEP IRA.
Finally, living together in retirement can be difficult for couples who are used to having work as a diversion. To overcome the obstacles, couples should talk about retirement and be honest about their expectations, rules, and disappointments. They should also find a common ground, if they have different interests. It’s healthy for husbands and wives to pursue their own interests and have some separate groups of friends.
Reference: Financial Planning (October 25, 2018) “The 1 reason not to delay Social Security”