Social Security Expectations

Are you relying too heavily on Social Security for retirement?

According to a 2017 Center for a Secure Retirement study, 38% of baby boomers think Social Security will be their main source of retirement income. (That compares to 25% in 2008.) Whether this constitutes a financial misunderstanding or a financial worry, it may signal a problem.¹

If you retire at 62 in 2018, Social Security income may not be enough. The program’s maximum monthly benefit for a 62-year-old next year will be around $2,200. A retiring 70-year-old will likely get a maximum monthly benefit of about $3,600. Currently, the average monthly Social Security payment is around $1,400. Can seniors live on this kind of income? For many, it may not be enough to pay the bills.^{2, 3}

Fortunately, about 90% of us will have other income sources. Our retirement may also be funded by pensions, savings amassed in tax-deferred retirement accounts, rental income, parttime jobs, income contracts, or home equity. The key is to assess how much monthly or yearly income they may produce.⁴

Have you studied your potential retirement income sources? We should meet to review them as part of your preparations for your retirement transition. Call me or email me and we can work together to plan ways to generate sufficient income after you stop working.

Hanstad Wealth Management
Private Advisor Group

Ryland Hanstad AAMS® MBA

Financial Advisor

ryland.hanstad@lpl.com
www.hanstadwealth.com