Some people believe that those who were born between the years 1917 and 1921 are not receiving the same Social Security benefits as other recipients. This is referred to as the “Notch”. If you believe that you are in the “Notch” and aren't receiving enough benefits, you should know that in 1994 Congress looked at the issue and determined that everyone was receiving fair benefits. The most important step you can take is to remain informed and educated on the matter. Work with your Financial Planner and Investment Advisors, and if you feel you need to contact your legislators, due so equipped with as much knowledge as possible.
With the rising debate over Social Security, some politicians have suggested “private accounts” out of Social Security benefits. Whatever your personal opinion about private accounts, you should protect your interests by diversifying your portfolio and planning for the worst. Even though it is said that Social Security will be fine until the year 2041, it is still important to store up your nest egg, just in case there is trouble. In the meantime, contact your local legislators and let your voice be heard.
The Social Security Administration continues to change the age for full retirement. Here is a listing according to the year you were born and the current age for full retirement.
· If you were born in 1937 or earlier, then the age for full retirement is 65 years old.
· For those born in 1938, the age of full retirement is 65 and 2 months.
· The age of full retirement for those who were born in 1939 is 65 and 4 months.
· For those born in 1940, the age of full retirement is 65 and 6 months.
· For those who were born in 1941, the age of full retirement is 65 and 8 months.
· The age of full retirement for those born in 1942 is 65 and 10 months.
· If you were born during the years 1943-1954, then the age of full retirement is 66 years old.
· For those born in 1955, the age of full retirement is 66 and 2 months.
· If you were born in 1956 then the age of retirement is 66 and 4 months.
· The full age of retirement for those born in 1957 is 66 and 6 months.
· If you were born in 1958 the age of full retirement is 66 and 8 months.
· For those born in 1959, the age of full retirement is 66 and 10 months.
· The age of retirement for those born in 1960 and after is 67 years old.
· For those who were born on January 1st, use the previous years age of full retirement.
Today, the rising cost of living has caused many seniors to continue working after retirement. This has led to many people wondering what will happen to their Social Security benefits if they continue working. If you are above retirement age, you may continue to work without any of your Social Security benefits being affected. However, if you are under the full age of retirement, there will be a deduction to your Social Security benefits. In addition, you will also find that your future Social Security benefits will be higher, because of the additional income and Social Security contributions.
If you are under the full retirement age, your benefits will be deducted $1.00 for every $2.00 that you earn above the annual limit. The limit for 2006 is $12,480 however this figure is subject to change.
Experts agree that one thing is certain; depending solely upon Social Security is a recipe for disaster. You should begin your retirement planning while you are young and diversify your portfolio. Social Security will most likely make up 40 percent of your lifetime retirement income, with additional savings and investments completing the rest. If you need help with your retirement planning and strategy, then contact a Financial Advisor who can help you create a strong retirement plan.
Many people look at the future of Social Security with worry. With the generation of “Baby Boomers” ready to face their golden years, many believe that there will be a tremendous burden on Social Security. One way that the government has decided to handle this is by raising the age of retirement. Seniors today are staying in the work force longer and choosing alternative means for retirement planning. The longer you wait before receiving Social Security, the larger your benefit will be.