Key Takeaway: Marriage affects Social Security retirement benefits in various ways, including spousal benefits, divorced spousal benefits, surviving spousal benefits, and same-sex couple benefits. Understanding this is essential to maximize Social Security benefits in retirement. Spousal benefits can be up to 50% of the primary earner’s benefit amount and can be claimed as early as…
Key Takeaway: Conduct a financial evaluation of retirement plans two years before retirement to ensure that you have enough savings and income to support your lifestyle after retiring. This evaluation should take into account your expected retirement expenses and income, including Social Security benefits, pension payments, and withdrawals from savings. Adjust your current budget to…
Key Takeaway: Social Security benefits can be taxed after retirement depending on the individual’s income and filing status. This can come as a surprise to some retirees who thought they wouldn’t owe taxes on their benefits. The taxable amount of Social Security benefits is determined by a formula that takes into account the taxpayer’s modified…
Key Takeaways: The length of VRS retirement is determined by the number of service credits earned and the retirement option chosen. Service credits can be earned through years of service, unused sick leave, and purchasing additional credits. Factors that affect VRS retirement length include your retirement age, years of service, and final average salary. Delaying…
Key Takeaway: 403(b) retirement plans are tax-advantaged retirement savings plans designed for employees of public schools, colleges, universities, churches, and certain non-profit organizations. These plans offer similar benefits as 401(k) plans, but with some differences in eligibility and contribution limits. To be eligible for a 403(b) retirement plan, employees must work for a qualified employer…
Key Takeaway: Full Retirement Age (FRA) is the age at which an individual can receive full Social Security benefits. For individuals born in 1960 or later, the full retirement age in 2022 is 67 years old. Factors such as early or delayed retirement can affect the amount of Social Security benefits an individual receives at…
Key Takeaways: Pre-tax contributions to retirement accounts, such as 401(k), traditional IRA, and SEP IRA, are tax-deductible, meaning they lower your taxable income for the year and reduce your tax bill. After-tax contributions to retirement accounts, such as Roth 401(k) and Roth IRA, are not tax-deductible, but withdrawals in retirement are tax-free. Contributions to non-qualifying…
Key Takeaways: Downsizing in retirement may not always be the best idea due to financial considerations such as the cost of moving and potential loss of home equity. Emotional factors such as loss of community, social networks, and physical limitations should also be taken into consideration when deciding whether to downsize in retirement. Alternatives to…
Key Takeaway: Current financial situation is an important factor to consider when planning retirement. Understanding income, expenses, debt, and savings can help investors create an effective retirement plan. Determining retirement goals and expected lifestyle is critical in developing a retirement plan. Investors should consider factors such as travel, hobbies, and expenses in their planning process….
Key Takeaway: Retirement benefits for senators are based on the amount of time served in office and their highest salary earned. Senators can receive up to 80% of their highest salary as a retirement benefit. Compared to other federal employees, retirement benefits for senators are more generous. Retired senators also receive health insurance benefits, travel…
Key Takeaway: Full Retirement Age (FRA) is the age at which a person is entitled to receive the full amount of Social Security benefits. If you were born in 1956, your FRA is 66 years and four months. It’s important to know your FRA to make informed decisions about when to start receiving Social Security…
\n Key Takeaway: \n \n Early retirement may affect social security benefits: Retiring before full retirement age can lead to a reduction in benefits. It is important to understand the eligibility criteria and factors affecting social security benefits for early retirees. \n Factors affecting social security benefits for early retirees: Age at retirement and the…