Social Security is in trouble but you don’t have to be. In this last episode on Social Security we share some things you can do to ensure Social Security is not your only source of income in retirement. Making these few adjustments in your financial plan can make a huge difference in income during retirement.
HOW WILL the current state of Social Security IMPACT YOU AND YOUR FUTURE?
Lower benefit payments
With a significant number of people having 90 percent of their retirement income solely from Social Security, the future doesn’t look great!
People aren’t saving enough.
Average retirement savings
Age 32-37: $31,644. = $183 a month in retirement
Age 38-43: $67,270.
Age 44-49: $81,347.
Age 50-55: $124,831.
Age 56-61: $163,577. - $900 a month in retirement income
Average cost of living for a couple is between $3200 and $3600.
$217,441.27 = $1,000 a month withdrawal
$434,882.53 = $2,000 a month withdrawal
$869,765.06 = $4,000 a month withdrawal
(based on 4% withdrawal rate, 3% rate of return, 2% inflation)
Basic recommendation would be for you to live on 4% of your retirement savings.
Suggestion for having a better outcome
Get out of debt asap.
Live on a plan.
Downsize if necessary.
Reduce discretionary expenses - value based spending.
Build margin so you can save and invest more.
Save 10-20% or more of your income every year, the older you are, the more you should be saving.
The more you save now, the less you’ll be living on, so it will be easier to maintain a low lifestyle in retirement.
Stay healthy! You may need to work more than you originally planned.
Postpone taking SS payments out until 67 or 70 if possible. Unless you’re projected to die before age 75, then take social security early.
How to prepare for retirement…
Make sure your cars are paid off.
Make sure your home is paid off.
Move to a low property tax state.
Downsize the house.
Connect with a local community center, church, and area to enjoy your retirement.
Turn a hobby into a part-time business.
Find a hobby that keeps you healthy.
Take cheaper vacations.
Reduce eating out (health & financial).
States with lower taxes and affordability
States with Lowest Property Tax
Hawaii. Effective property tax rate: 0.29% ...
Alabama. Effective property tax rate: 0.40% ...
Louisiana. Effective property tax rate: 0.51% ...
West Virginia. Effective property tax rate: 0.53% ...
Wyoming. Effective property tax rate: 0.55% ...
South Carolina. Effective property tax rate: 0.56%
Seven decent sanctuaries: Florida, Nevada, South Dakota, Tennessee,
Texas,Washington and Wyoming have sales taxes but don't impose state income taxes, or levies on Social Security and pension income.
Three shopping shelters:Delaware, Montana and Oregon do not have a sales tax.
Budgeting and Debt Elimination Tools
Jesus on Money by David Thompson - stewardshippastors.com
Book cover design - vote here: https://www.stewardshippastors.com/jesus-on-money-book-cover.
US National Debt - https://www.usdebtclock.org/