• Question
  • How can I maximize my retriement income?And pay all my Bills,and have a little money in my pocket

    Asked by a 69 year old man from Fort Wayne, IN on 3/7/2013

    How can I maximize my retirement income?And pay all my Bills,and have a little money in my pocket okay.!!!

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  • Categories: Retirement Planning, Budgeting

Answers

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  • Being able to accomplish this goal varies between everyone, but there are a few actions that can be taken to help meet your needs. One such measure would be to delay retirement in order to accumulate a greater savings by working longer and not relying on social security benefits for a few years.

    One of the first things to consider is waiting until your full retirement age (FRA), which can be found at http://www.ssa.gov/pubs/ageincrease.htm, to start receiving social security benefits. Waiting for this age will prevent the benefits from being reduced by taking them early, but if you wait until age 70 the benefits will have accumulated a raised amount, due to the delay, and your payments will be higher because of this. More information about delayed credits can be found at http://www.ssa.gov/retire2/delayret.htm.

    If you are still participating in an employer’s retirement plan or an individual plan it can be beneficial to continue to maximize your contributions to those plans. You also qualify to make additional contributions above the maximized amount; commonly know as catch-up contributions, to your plan because you are over the age of 50. For 2013 catch-up contributions up to $5,500 may be allowed in 401(k), 457(b), SARSEP, and 403(b). http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics-Catch-Up-Contributions provides more detailed information on these amounts.

    Concerning payment of bills, one way to address this is by tracking your expenses for a few months and going through them to find if there are any areas where excessive spending could be reduced. This reduction can lead to savings and also ensuring that your retirement income will be able to meet the expenses you are expecting to have in the future. It will also be helpful to categorize expenses that may no longer be around during retirement, such as mortgage payments.

    This answer is provided as general information only and provided by Master’s students pursuing a degree in Personal Financial Planning at Texas Tech University. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or Certified Financial PlannerTM as to your unique financial situation.

  • Login to rate this answer:   Answered on 4/5/2013
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.