At first glance, you may not think that work and retirement mix. After all, retirement is all about leaving the working world. How can you enjoy your newfound freedom and lifestyle if you’re still working?
 
Working doesn’t have to mean giving up your freedom, though. You could work part time or seasonally. You could work as a coach, consultant or trainer and manage your own schedule. You could even freelance or drive for a ride-sharing company.
 
No matter which route you take, there are serious benefits to working in retirement. Obviously you get supplemental income, which could help you maintain your retirement assets and enjoy greater financial stability. Work could also provide socialization opportunities and help you meet new friends.
 
There are also a few considerations that you shouldn’t ignore. Are you healthy enough to work in retirement? What kind of schedule would allow you to still enjoy your retirement? And perhaps most important, how will the extra income affect your Social Security benefits?
 
Social Security is an important resource for retirees. In fact, nearly 90 percent of all Americans age 65 and older rely on Social Security for income.1 If you’re like most, Social Security will play an important role in your financial picture.

Does work impact your Social Security benefits? It depends on a number of factors, including your earnings and your age. Below are a few important guidelines to keep in mind as you plan your retirement strategy:

Before Full Retirement Age (FRA)
 
The earliest you can file for Social Security is age 62. You can file at this age even if you are still working. Regardless of whether you’re working, however, filing before your FRA could lead to a big reduction in your benefits, perhaps as much as 35 percent.2 Despite the potential reduction, many people choose to file for benefits as soon as they’re eligible.
 
The benefit reduction could be compounded if you file early and choose to work. Before your FRA, you can earn up to $17,040 in a year without seeing a reduction in your benefits. After you cross that threshold, however, your benefit is reduced by $1 for every $2 you earn. If you plan on continuing to work, think carefully about whether it makes sense to file for Social Security.3

Year of Your FRA
 
Most people’s FRA lands at some point between their 66th and 67th birthdays. The actual month depends on your date of birth. You don’t technically reach your FRA until that month arrives.4
 
Once you reach the year of your FRA, Social Security makes an adjustment to the work reduction. In that year, you can earn as much as $45,360 without seeing a reduction. Keep in mind that those are your maximum earnings up to the month in which you reach your FRA. After you cross the threshold, your benefit is reduced by $1 for every $3 you earn.

After Your FRA
 
In the month you reach your FRA, you can start working with no benefit reduction and no earnings limit. You can earn as much as you want and still receive your full Social Security benefit. At this time, Social Security also recalculates your benefit amount and excludes any months in which your benefit was previously reduced because of earnings penalties.
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at Carstens Financial Group. We can help you analyze your needs and develop a strategy. Let’s connect soon and start the conversation.

 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.ssa.gov/planners/retire/agereduction.html
3https://www.ssa.gov/planners/retire/whileworking.html
4https://www.ssa.gov/planners/retire/1943.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17848 – 2018/7/30

 
Struggling to adjust to retirement? You’re not alone. While many retirees are initially excited to leave the working world, some find themselves bored and lonely soon after. In fact, a study of 18,000 retired men found that their happiness levels crashed in the months and years after retirement. Some retirees may even be at risk of depression or anxiety.1
 
Retirement is a major life goal for many, and it should be a time of celebration. It marks the end of a successful career and the beginning of a new period when you’re free to live life as you like. So why do so many retirees struggle with the transition?
 
There are a wide range of answers. Some may feel that they lack purpose without a career. They may feel overwhelmed by an open daily schedule with no activities. They may miss their friends and social contacts from their careers. There are any number of reasons why someone may struggle with the transition to retirement.
 
Fortunately, there are steps you can take to make the transition less difficult. If you recently retired or you’re nearing retirement, consider how you want to spend your time in retirement. Below are a few tips to help you make the adjustment:

Leave the house.
 
This may be the biggest step you can take to keep feeling active. Find a reason every day to get dressed, go through your morning routine and leave the house. You could find a meetup group that’s involved in an area of interest. You could take up a new hobby. Or perhaps you could meet up with an old colleague or friend for lunch or coffee.
 
The idea is to find at least one thing that gets you out of the house and keeps you active and social. If you stay home regularly with nothing on your calendar, boredom could soon set in. That could lead to feelings of depression and loneliness.

Develop a “yes” mentality.
 
When you’re a busy professional, you end up saying no to many requests. You don’t have time to have lunch with a colleague or go on that weekend trip with friends or play in the weekly golf league. You’re so busy that you get in the habit of saying no.
 
Once you retire, strive to find ways to say yes. Try to develop a proactive mindset and be open to new activities and events. Consider joining a club or taking a class in an area that interests you. Many areas offer seniors groups or retiree groups that coordinate social activities. While you may feel uncomfortable walking into a group or class alone, try to embrace a positive mindset that helps you attempt new activities.

Consider working part time.

You may think retirement and work don’t go together. After all, the whole point of retirement is to leave the working world. However, working part time could offer a number of important benefits. It gets you out of the house and gives you an opportunity to socialize with co-workers, customers and others. A study also showed that retirees who work part time are less vulnerable to serious illness and depression.1
 
Ready to develop your retirement strategy? Let’s talk about it. Contact us today at Carstens Financial Group. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://health.usnews.com/health-care/patient-advice/articles/2017-07-28/can-retirement-be-a-depression-risk
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17859 – 2018/7/31
 

​ 
If you’re approaching retirement, you’re probably starting to think about Social Security. It’s a valuable program that plays a large role in most retirees’ financial picture. It will likely be an important resource for you. But how much do you actually know about Social Security?
 
Below are a few interesting facts about the Social Security program. As you approach retirement, take time to research your Social Security options so you can make an informed decision about your benefits.
 
Nearly every American over 65 receives Social Security income. According to the Social Security Administration, 9 out of 10 retirees rely on Social Security for income. It also provides income to more than 10 million disabled workers and 6 million survivors.1
 
Many retirees rely heavily on Social Security for income. Nearly a third of all retiree income comes from Social Security benefits. Almost half of all retired married couples and 71 percent of single retirees rely on Social Security for more than half of their income.1
 
Today’s retirees are living longer than past generations. Social Security started paying regular monthly benefits to retirees in 1940. At that time, a 65-year-old could expect to live for another 14 years. Today a 65-year-old is expected to live an additional 20 years. The number of retirees over age 65 is expected to increase from 49 million today to more than 79 million by 2035.1
 
Social Security provides increases to match inflation. Social Security offers cost-of-living adjustments (COLAs) to help retirees keep up with inflation. However, the adjustment isn’t guaranteed and may not happen every year. In 2017 the increase was 2 percent. In 2016 it was 0.3 percent. There was no increase at all in 2015.2
 
Social Security COLAs may not accurately reflect health care costs. Social Security COLAs are based on the consumer price index (CPI). However, the CPI doesn’t account for the fact that seniors spend more on health care than the overall population. Thus, the CPI may not weigh medical costs in a way that’s reflective of retirees’ true costs. The result is that Social Security COLAs haven’t kept up with health care inflation in 33 of the past 35 years.3
 
There’s a maximum Social Security benefit. The maximum Social Security benefit is currently $2,687 per month, but it’s adjusted regularly based on inflation. You probably don’t need to worry about the cap, though. The average benefit amount is just over $1,300 per month.3
 
You can file for benefits as early as age 62. Many people choose to file for benefits as soon as they’re eligible. If you file before your full retirement age (FRA), however, you could see a permanent reduction in your monthly benefit. Most people reach their FRA between their 66th and 67th birthdays. If you file before your FRA, your benefit will be reduced, perhaps as much as 35 percent.4
 
You can increase your benefits by delaying your filing past your FRA. You may wonder why anyone would delay Social Security benefits. The main reason is because Social Security offers an 8 percent benefit credit for each year past your FRA that you delay your filing. The latest you can delay your filing is age 70. If your FRA is 66 and you wait until age 70, your benefit could increase as much as 32 percent.5
 
Social Security deficits will begin in 2020. We’re only a few years away from Social Security starting to run annual deficits. That means the program will pay out more in benefits than it brings in through payroll taxes. Without changes, the Social Security trust fund will be completely depleted by 2034.6
 
But that doesn’t mean Social Security will be gone anytime soon. It’s possible that Social Security could last to 2090 even if the trust fund is depleted in 2034. However, doing so may require a 21 percent cut in benefits across the board.
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at Carstens Financial Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.ssa.gov/oact/cola/colaseries.html
3https://www.fool.com/retirement/2016/12/04/25-social-security-facts-figures-you-need-to-see.aspx
4https://www.ssa.gov/planners/retire/agereduction.html
5https://www.ssa.gov/planners/retire/delayret.html
6https://www.fool.com/retirement/2017/05/22/a-big-social-security-change-is-coming-in-2020-and.aspx
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
 
17846 – 2018/7/30

​Is retirement on the horizon? Worried that you don’t have enough money saved? You have company. According to a Gallup survey, more than 50 percent of Americans are worried about not having enough money for retirement. In fact, retirement is Americans’ top financial concern.1
 
Those concerns may be justified, especially for baby boomers. Research from the Transamerica Center for Retirement Studies found that baby boomers have a median retirement savings balance of $147,000.2 That may be a sizable amount of money, but it’s unlikely to be enough to fund a long retirement.
 
The good news is that you can still get your retirement back on track, but you may need to act quickly. If you don’t have a catch-up plan in place, now is the time to develop and implement one. A financial professional can help you create your strategy.

​Saving for retirement is a difficult task for most Americans. You probably have pressing financial concerns that feel more urgent than saving for the future. For example, you may be struggling with debt or paying for your child’s education.
 
You may feel like you have plenty of time to save, but the truth is that the earlier you start saving, the easier it will be to hit your objectives. Time is a valuable asset when it comes to retirement planning. If you start saving early, you give your assets plenty of time to grow and compound, which could help you accumulate more money.
 
Below are a few tips to help you boost your retirement savings. If you haven’t started yet, or if you feel like you’re behind, now is the time to take action and increase your savings. A financial professional can help you create a plan.

​Did you just turn 50? Or are you within 10 to 15 years of retirement? If so, you may already be dreaming about your future life after you leave the working world. While it may be easy to plan vacations and think about your free time after you retire, this is also a good time to implement the final steps in your financial planning.
 
Below are a few action items to consider as you approach retirement. If you haven’t developed a retirement strategy, now may be the time to do so. A financial professional can help you fill the gaps in your planning so you can enter retirement with confidence.

​Are you approaching retirement and worried that you’re behind on your savings? You have company. A recent report from the Insured Retirement Institute found that 40 percent of baby boomers have no retirement savings. Nearly 70 percent have no pension or defined benefit plan. And almost 60 percent have less than $250,000 in retirement savings.1
 
Saving for retirement is always a challenge. You have other expenses and financial needs that may seem more pressing. You may be struggling with debt, or you could be paying for your child’s education. You may feel that those items are more important than retirement.
 
If you’re approaching retirement, however, you may not have much time left to save. Now may be your last, best opportunity to take action and close your savings gap. Below are three tips to help you get started. You also may want to meet with a financial professional to help you develop and implement a catch-up plan.

​Your retirement plan may be to save as much money as possible. That’s not a bad idea. Your strategy may consist of contributing to a 401(k), an IRA or even a health savings account. When you’re young and have many years until retirement, asset accumulation is an important priority.
 
As you near retirement, however, you may want to consider issues besides asset accumulation. It’s important to think about not just accumulating assets, but also how those assets will be put to use. That means asking yourself questions about your desired lifestyle.

Below are four questions you may want to ask yourself as you develop and hone your retirement strategy. These questions can help you think beyond the financial aspects of retirement planning. They can also inform your spending decisions in retirement so you can protect your assets and your financial stability.

​Life can change quickly. Emergencies and unexpected costs can happen at any time. You could lose your job and suffer through a stretch of unemployment. You could suffer an injury or illness that results in substantial medical costs. You may experience home damage or costly car repairs. These things and more are all common challenges for many households. That’s why an emergency fund is such a critical component of any financial plan.
 
Unfortunately, many Americans have little or no savings. A new study found that 66 million Americans have zero emergency savings. Another study found that 47 percent of Americans wouldn’t be able to cover a $400 emergency expense without borrowing money or selling something.1
 
Why do so many Americans lack savings? They may struggle with debt and be unable to meet their standards. They may have a standard of living that’s well beyond their means. Or they may simply think that an emergency won’t happen to them.

​Is retirement quickly approaching? If so, you may be in the final stages of wrapping up your career and planning your income strategy. You might be assessing your investments, considering when to file for Social Security or even reviewing your Medicare options.
 
One critical step is the creation of your retirement budget. A budget is always helpful, but it’s especially important in retirement. You can use it to analyze your spending and make informed buying decisions. It can also help you stay on track so you meet your long-term saving and spending goals.