Categories
Retirement

Retirement Planning Blog

Nearly 80 million baby boomers are gradually retiring, and some have begun to cash in on their benefits. Furthermore, individuals born between 1946 and 1964 (“Baby Boomers”) are retiring at record rates, causing problems for social security. As a result, baby boomer retirement trends appear to be forming in the near future. This retirement planning blog can help you make the smart decisions with your savings and investments. However, the big question is: Do you have enough money saved to retire?

The analysis focused on social security, which is affected by social, demographic and labor market changes. Subsequently, they alter the retirement expectations of the birth cohorts. This retirement planning blog assesses the impact of these changes on the long-term health of social services and other services. There is no clear explanation as to why this has created such a large imbalance between social security benefits and those of normal income from work.

Retirement Planning Blog Trends: Boomers Retiring Simultaneously

Nearly half of baby boomers will pay in more than they receive from Social Security in the next few years. This, according to a recent report from the Center on Budget and Policy Priorities. Furthermore, analysis suggests that new retirement planning blog trends are resulting as more beneficiaries are collecting social security than are paying into the system. On average, today’s retirees have an average income of about $50,000 a year, or $2,500 more a year. While baby boomers are likely to have higher incomes and lower poverty rates than their parents, they can also expect lower replacement rates.

As the baby boomer generation reaches retirement age, concerns about retirement planning will grow exponentially. In addition, there will therefore need to be good strategies to deal with them. In fact, learning about the retirement planning blog trends can be critical to a retirement plan. To take pressure off the system, the younger generation should now work to develop their own retirement plan. This is a better option than saying goodbye to Social Security. Clearly, reading this retirement planning blog and understanding the retirement trend is key.

Simultaneous Retirement of Baby Boomers

One issue that almost no one is talking about on any other retirement planning blog right now is the surge of baby boomers retiring soon. This large number of soon-to-be retirees who will be receiving benefits may create unusual baby boomer retirement trends.

“Over 64 million people, or more than 1 in every 6 U.S. residents, collected Social Security benefits in June 2020. While older Americans make up about 4 in 5 beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI). In addition, some recipients were young survivors of deceased workers.” – Center on Budget and Policy Priorities

Clearly, baby boomers have been the largest generation paying into the social security system for some time. However, now the rolls of baby boomers will shift as the baby boomer retirement trends unfold. As a result, baby boomers will depend upon government benefits and payouts. In addition, many boomers will pay reduced taxes and will not contribute to a pension or 401(k).

In particular, some retirement experts project that social benefits will be replaced by universal basic income. Furthermore, this could happen by the end of the twentieth century, as is reflected in this retirement planning blog. As the number of baby boomers increases as retirees, the number of early retirement incomes for unmarried women is rising. For high-birth cohorts, a large proportion of these values have fallen to 40% for high-birth cohorts. In contrast, the values have fallen less than 1% for non-marital men.

The Dark Cloud Over Social Security

However, there are a growing number of people who have doubts about social security. In fact, 42% of millennials believe they will receive retirement income from Social Security. In addition, about half of Generation Xers, who are now 31-46 years old believe this as well. Many believe that baby boomers and social security benefits may only benefit boomers. Just over a third of working millennials have an employer with a subsidized pension plan. However, more than a third do not have a plan. The share of young adults in the US with a full-time job is lower than in previous generations of the same age.

The retirement age for social security was increased, and about half of it has been raised gradually. If changes are not made to social security, the retirement age for Social Security may rise to 66 in 2026. Similarly, those who rely on Social Security are more likely to raise their retirement age to 65 or older.

When to Claim Social Security Benefits   

Boomers want to maximize their monthly Social Security payout by waiting until they claim as late as possible, but the truth is that after years of paying into the system, they are waking up to the fact that they will end up receiving benefits, and they want to know more about how it works. Many baby boomers face a rude awakening, as many expect too much from Social Security. Boomers will be 62 this year, and the number of years they will be eligible for benefits from the current 65-year retirement age will increase.

There are even more grumbles among younger baby boomers, who are studying strategies for when it would be in their best interest to claim their benefits. As baby boomers retire in greater numbers and federal program funding becomes less secure, dependence on Social Security will increase, according to a new report from the Center for Retirement Research at the University of California, San Francisco. But, as more baby boomers become eligible for benefits, the strategy for how benefits are claimed will rise and fall, according to the Institute for Social Policy’s (ISPR) report, “Benefit Eligibility and Benefit Maximization.”

The decline in the replacement rate of social security is partly due to the projected decline in the number of pensioners over the next 30 years. Another factor is the decrease in the retirement age at which benefits are claimed. Furthermore, the decline in benefits is driven by a projected decline in benefits.

The Age That You Will Retire

How old will you be when you retire? This is one of the questions that this retirement planning blog wants you to answer. Answering this question can help you gauge your progress toward retirement. Ultimately, it will help you determine how much savings you should have at 40. In addition, you can set goals for how much money you need when you reach the milestones of 50 and 60 years old.

Calculate Your Retirement Age

First, if you live in the United States and were born after 1960, you may be eligible to retire at age 67. Second, if you were born earlier than 1960, then the age requirement is 66. These are the ages where you may be eligible for Social Security Benefits. Consequently, you can look at the United States Social Security Benefits Website for additional details. They also offer a retirement calculator and benefits planner there.

If you want to narrow down how much money you will need for retirement, there are four primary factors needed.

  • Current Age
  • Retirement Age
  • Monthly Cost of Living (Estimate)
  • Life Expectancy

First, if you take your current age and subtract your retirement age, then that gives you how many years you will have to save for retirement. For example, if you plan to retire at 67, and you are 40 years old, then you have 27 years to save (67-40 = 27).

Next, how long will you live? Men and women live to be different ages. According to the World Bank, Americans live to be an average age of 78. So if you subtract 67 from 78, then you will need savings that will last for 11 years of retirement.

Finally, calculate how much money you will need annually (70-80% of normal salary) and multiply it by 11 years. This gives you the pot of money you will need to retire. So, using data from earlier examples, if you make $3000/month (12 x 3000 = $36000/year), we’ll multiply it by 80% to be on the safe side. Then, 36000 X .80 = $28,800/yr. You can survive on $28,800/yr.

Then, let’s find out how much money you need for all of your retirement. Note, this is an estimate. Many people live to be much older than 78, so you may consider adding a few years to your calculation to build a cushion.

Total Dollars Needed for Retirement (from example above):

$28,800/year X 11 years = $316,800

How much money you need to save each year to reach your retirement goal:

$316,800/27 = $11,733 each year (or $977/month)

Note, this doesn’t account for compounding interest on investments, which usually help you greatly when it comes to saving for retirement.

Investing 101: It’s Never Too Late to Start Investing

Take Control of Personal Finances and Dollar-Cost Averaging

Learning about investing doesn’t have to be complicated. If you are one of the baby boomers who are worried about the baby boomer retirement trends, you can still invest now. Once you establish your goals and how much money that you want to invest each month, you can then determine what kind of investments you wish to make. However, every adult should learn to budget, save money and pay off debt first. If you have a family, it is critical that you begin planning your financial future.

Many investors use “dollar-cost averaging” as a part of their investment strategy. Dollar-cost averaging is simply dividing up the amount of money you have to invest over a longer time frame. This investment methodology means that you invest the same amount of money each week or month, no matter if the market goes higher or lower. Dollar-cost averaging takes the emotion out of buying stocks.

What is Your Level of Risk?

Active Versus Passive Investing; Aggressive Versus Conservative Investing

First, the major categories of investment include active management or passive management. For example, a portfolio manager can determine what investments are in your fund and make decision for you using passive management; however, active management means that you reserve more control of your investments and perhaps you even use online services to trade individual stocks on a daily basis.

Second, you must determine if you are an aggressive or a conservative investor. Many baby boomers continue to work and invest while collecting social security before the baby boomer retirement trends unfold. Aggressive investing is utilized by those who want to take more risk and capture greater returns. This type of investing is considered acceptable for younger investors and for savvy investors who want to dedicate a small portion of their portfolio to higher risk. Conservative investing is a lower risk style of investing. Returns tend to be lower than the aggressive style, but come with lower risk. This style is best for those that desire lower risk and those who are getting closer to retirement age.

Retirement Planning Blog Wrap Up

Clearly issues with retirement trends will continue to be challenging. However, the outlook for younger generations is not as good, considering inflation and the concern with the social security program’s ability to provide benefits. As a result, younger people should make an effort to plan their retirement using savings, investments and creating other income streams that will provide money needed in retirement. Following our retirement planning blog can be very helpful in your retirement planning process.

Read More:

Millennial Wealth Management

Value Investing Books

Retirement Planners

How Much Savings You Should Have at 40

Real Estate Market Predictions

Why Saving Money is Important

The Best Budget App

10 Things to Know Before Starting a Budget

Debt Elimination

Best Gold Coins to Buy

Wealth Building Cornerstones

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

Categories
Investing

Investment Management Process

We explain the investment management process and how to invest as a logical, 5-step approach, including factors such as risk assessment, investment time-frame and investing style.

Learning about the investment management process can be confusing to new investors. In the 20th century, investing was simple: stocks, bonds and real estate. Today, the investment management process has become much more complicated with an infinite number of choices that may be very complicated to understand.

The good news is that your investment portfolio can be as simple or as complicated as you want it to be. In addition, you don’t have to be rich to begin investing. In this article we will lay out a clear, 5-step approach to the investment management process you can use to organize how you invest.

Investment is defined as, “the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.” –Dictionary.com

Types of Real Investments:

  • Stocks
  • Bonds
  • Mutual Funds
  • Retirement
  • Real Estate Trusts (REITs)
  • Real Estate (Land/Homes)
  • Annuities
  • Precious Metals (Gold, Silver, etc.)
  • Cryptocurrency (Bitcoin)
  • Insurance

Summary of Investment Process

  1.  Establish Goals
  2.  Assess Personal Finances
  3.  Determine Risk Tolerance
  4.  Develop Investing Timeline
  5.  Begin Allocating Funds for Investment

Step 1: Establish Goals

The first step in the investment management process should be to determine what your financial goals are and what you wish to accomplish. Where do you see yourself in 10, 25 or even 50 years? The average life expectancy for Americans is around 78 years old. However, you may have family members that live to be in their 90s and beyond. If you retire at 65 and live to be 95, will you have enough money invested to last through your retirement years?

Write Down Your Goals

If you want to retire at age 65 and move to Hawaii, then write that down as part of your goals. Begin by creating a journal, a spreadsheet or plan where you list exactly what you have planned for the future. This serves two purposes. First, writing down your goals makes what you want explicitly clear. It gives you a starting point and also provides you with the details that you will need to determine how you will reach your goals.

Second, the purpose of planning out your financial goals on paper (or electronically) is that you are signaling to yourself and others what you want. History has proven that the psychology of desire and intention is a powerful tool in accomplishing goals. Many wealthy investors credit their personal wealth and success to the philosophy outlined in the book, “Think and Grow Rich” by Napoleon Hill.

Step 2: Assess Personal Finances

Learn to Budget, Save, Pay Off Debt and Live Below Your Means

Budgeting is one of the critical steps that can help you take control of your life and control personal finances. In addition, preparing a budget allows you to not only know where your money goes, but also allows you to plan where your money will go in the future. Finally, it’s important that your money works for you, not against you in your investment process.

During the investment management process, we also prepare ourselves for better quality of life by having more money. Having more money means that you have more power to dictate the kind of life you want, especially in retirement.

How Budgeting can help you:

  • Improve your credit score
  • Save for emergencies
  • Save and invest for retirement
  • Stop wasting money and curb bad habits
  • Promote a healthy, meaningful lifestyle
  • Buy a new home or upgrade your existing home
  • Obtain financial freedom

Pay Off All Debts

Before you can start the investment management process, you must pay off all debts. Now that you’ve established your budget, cut personal spending to the bare minimum. You will take extra money that you have leftover in your budget and use it to pay down debts. Create a list or accounting of your debts, the corresponding balances and interest rates that you maintain. Use this information to help you keep track of your progress as you pay down debts.

If you are young and just starting out, hopefully your debts are minimal. Having minimal or no debt when you begin your journey toward wealth creation is a huge advantage. Paying off debt can take years and a great deal of sacrifice.

Living Below Your Means

While following a budget, you should be living below your means (hopefully). Unfortunately, living below your means is a philosophy that most people don’t follow these days. Living below your means requires that you spend less than what you make. For example, if your take home pay is $1500 per month, then living below your means is only spending $1,000 per month.

The extra money that you save from living below your means will serve two purposes. At first the extra money will be used to pay down debts quickly. Getting ahead requires that all debt be paid off first. Secondly, after the debt has been paid off, you will then use the positive cash flow to fund your emergency fund, savings and investments. Each of these is part of your net worth and the buffer between you and poverty. The more you can grow your savings and investment, the simpler and easier life gets.

Save Money Every Paycheck

Put Aside 10-15% of Your Regular Income for Investment

One of the habits that can help you reach your goals in the investment management process is to start saving each paycheck. Make it a habit to take 10-15% of each paycheck and save it. After a short time, you will realize that you don’t even miss the money.

Make saving 10-15% of each paycheck easy by setting up an automatic money transfer, either to your investment account or to your savings account. For example, each time your paycheck is deposited into your checking account, have an automatic transfer set up that moves money into your savings account. Some people even have a savings account that is in a different bank to reduce the temptation of raiding the account.

Step 3: Determine Risk Tolerance

What is Your Level of Risk?

Active Versus Passive Investing; Aggressive Versus Conservative Investing

To start, you must determine what style of investor that you are. First, the major categories of investment include active management or passive management. For example, a portfolio manager can determine what investments are in your fund and make decision for you using passive management; however, active management means that you reserve more control of your investments and perhaps you even use online services to trade individual stocks on a daily basis.

Second, you must determine if you are an aggressive or a conservative investor. Aggressive investing is utilized by those who want to take more risk and capture greater returns. This type of investing is considered acceptable for younger investors and for savvy investors who want to dedicate a small portion of their portfolio to higher risk. Conservative investing is a lower risk style of investing. Returns tend to be lower than the aggressive style, but come with lower risk. This style is best for those that desire lower risk and those who are getting closer to retirement age.

Step 4: Develop Investing Timeline

Estimate Retirement Age and How Much Money You Need to Retire

How old will you be when you retire? This is one of the questions that you want to answer during the investment management process so that you can gauge your progress toward retirement. In addition, you can set goals for how much money you need when you reach the milestones of 30, 40, 50 and 60 years old and so forth.

Retirement Age

First, if you live in the United States and were born after 1960, you may be eligible to retire at age 67. Second, if you were born earlier than 1960, then the age requirement is 66. These are the ages where you may be eligible for Social Security Benefits. Consequently, you can look at the United States Social Security Benefits Website for additional details. They also offer a retirement calculator and benefits planner there.

If you want to narrow down how much money you will need for retirement, there are four primary factors needed.

  • Current Age
  • Retirement Age
  • Monthly Cost of Living (Estimate)
  • Life Expectancy

First, if you take your current age and subtract your retirement age, then that gives you how many years you will have to save for retirement. For example, if you plan to retire at 67, and you are 40 years old, then you have 27 years to save (67-40 = 27).

Planning for 30 years of retirement is a typical timeframe that most investors use. However, life expectancy has been increasing for Americans and you should also consider that you may live to be 100 years old.

Determine How Much Money You Need to Live on

You Will Need 70-80% of Your Current Salary for Retirement Expenses

While thinking about budgeting, take a closer look at how much money you need to live on each month. For example, what basic amount of money do you need each month to cover expenses? You need enough money to pay for a place to stay, food, electricity, etc. Don’t include things like vacations, luxury items or entertainment. Once you determine how much you need to live on, you can then start to figure out what retirement expenses look like.

Another common rule of thumb for estimating how much money you need when you retire is the 70-80% Rule. In other words, many experts believe that you will need at least 70-80% of your current income to make ends meet. For example, if you bring home $3,000 each month, then you will likely need approximately $2,100-2400 each month in retirement. This is a realistic way of estimating what you need to retire if you don’t want to do complicated calculations or spend a lot of time on the topic.

Step 5: Begin Allocating Funds for Investment

This step is the final step in the investment management process. You will begin depositing money into your investments. The easiest way to start is to allocate a percentage of your earnings each month. You will then review your investment portfolio each year with your investment advisor to determine whether it requires changes. Your investment advisor can help you through the investment management process.

Ideally, your investments will be divided into groups, with a certain percentage of your total investment allocation going to each group. For example, you may have chosen to invest in stocks, real estate, precious metals and cryptocurrency. You may be investing 50% in stocks, 25% in real estate, 20% in precious metals and 5% in cryptocurrency. Obviously, the percentage allocated to each group you choose will be determined based upon your risk tolerance.

Dollar-Cost Averaging

Many wise investors use “dollar-cost averaging” as a part of their investment process. Dollar-cost averaging is simply dividing up the amount of money you have to invest over a longer time frame. For example, let’s say you have $1,200 to invest in the year 2021. Then each month, you will invest $100 ($1,200/12 months = $100/mo.). Your $1,200 investment would then be dollar-cost averaged over a one-year period.

This investment methodology means that you invest the same amount of money each week or month, no matter if the market goes higher or lower. Dollar-cost averaging takes the emotion out of the investment management process and simplified investing. It also prevents investors from making bad decisions.

If you don’t know how much to invest, then start out simply. Every month, divert 10-15% of your earnings to investment(s). An example would be investing in a 401(k), Investment Retirement Account (IRA) and/or real estate. Year after year, your money will grow and work for you during the investment management process to create wealth.

Diversify Investments

No one can predict the future to know what investments will do well and which ones will fail. As a result, we can improve our odds of success in investing my diversifying our investments. Diversification of investments means spreading your money over different investment sectors. For example, you may want to have some stocks, bonds, real estate and precious metals in your investment portfolio.

Tax Considerations

Some investments will inherently have higher tax implications than others. In many cases, timing is important when the asset is sold in determining how it is taxed. The level of taxation of an asset can impact your return on investment. For example, if you purchase a home, fix it up and flip it for a profit, it will be taxed at a higher rate than if you simply bought a home and lived in in for a few years.

Find a Good Financial Advisor

Many of the topics discussed regarding personal finance and investment complicated and you probably need the assistance of a financial advisor. A financial advisor can help you make better informed decisions about how to best invest your money. Be careful to select an advisor who is knowledgeable in their industry and who has a proven track record regarding investment.

Unfortunately, many “financial advisors” are simply sales people who know very little about investment and are simply trying to earn a commission by locking in your business. Do your research to find the best candidate. In some cases, good financial advisors charge an upfront fee for consultation because they do not earn a commission from helping you with investing.

“Faux Investments” That Are Not Really Investments

Our list of investments did not include several financial products that some may consider investments. The reason we excluded these “faux investments” is because they don’t provide real returns on your investment and/or they may be risky. In addition, many of the faux investments may actually lose money on an annual basis, guaranteed.

For example, if you place your money in a savings account and nominally earn 0.1% interest on your savings, this might sound ok. However, if you consider that inflation is currently 1-3%, then your 0.1% rate of return at the bank is eaten up by inflation. In fact, you actually lost money from inflation, guaranteed.

List of Faux Investments

  • Savings Accounts – Money in savings earns very little interest and cannot withstand current inflation rates.
  • Options – Risky market plays that often expire worthless and are simply a hedge against other investments.
  • Futures – Risky market play that hedge against counter investments and require deeper level of investment and trading knowledge.
  • Initial Coin Offerings (ICOs) – Many of these are not available to investors in the United States and may have regulatory implications.

Take Control of Personal Finances and Begin Investing

Now is a great time to begin getting your personal finances in order. Thinking and planning for the future are noble activities that we encourage at Piggy Bank Coins. Moreover, every adult should learn to budget, save money and invest at some time in their life. If you have a family, it is critical that you begin planning your financial future and develop an investment management process.

Read More:

Is It a Good Time to Buy Stocks?

Value Investing Books

10 Things to Know Before Starting a Budget

US Dollar History: How the Dollar Became the World Reserve Currency

How Much Savings You Should Have at 40

Ways to Save Money on a Tight Budget

Best Budget Planner

Home Buying Power

Purchasing Power Risk

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, to help you make the best choice for you.

Categories
Money

Baby Boomers Social Security

Nearly 80 million baby boomers are gradually retiring, and some have begun to cash in on their benefits. Furthermore, individuals born between 1946 and 1964 (“Baby Boomers”) are retiring at record rates, causing problems for social security. As a result, baby boomers social security may be at risk in the future.

The analysis focused on social security, which is affected by social, demographic and labor market changes. Subsequently, they alter the retirement expectations of the birth cohorts. This article assesses the impact of these changes on the long-term health of social services and SSI services. There is no clear explanation as to why this has created such a large imbalance between social security benefits and those of life – income from work.

Baby Boomers Are Retiring

Nearly half of baby boomers will pay in more than they receive from Social Security in the next few years. This, according to a recent report from the Center on Budget and Policy Priorities. Furthermore, analysis suggests that some baby boomers social security collection in retirement can expect higher incomes and lower poverty rates. On average, today’s retirees have an average income of about $50,000 a year, or $2,500 more a year. While baby boomers are likely to have higher incomes and lower poverty rates than their parents, they can also expect lower replacement rates.

As the baby boomer generation reaches retirement age, concerns about retirement planning will grow exponentially. In addition, there will therefore need to be good strategies to deal with them. In fact, learning about baby boomers social security benefits can be critical to a retirement plan. To take pressure off the system, the younger generation should now work to develop their own retirement plan. This is a better option than saying goodbye to Social Security. Clearly understanding baby boomers social security benefits is key.

Simultaneous Retirement

One issue that almost no one is talking about right now is the surge of baby boomers retiring soon. This large number of soon-to-be retirees who will be receiving benefits may put a strain on baby boomers social security.

“Over 64 million people, or more than 1 in every 6 U.S. residents, collected Social Security benefits in June 2020. While older Americans make up about 4 in 5 beneficiaries, another one-fifth of beneficiaries received Social Security Disability Insurance (SSDI). In addition, some recipients were young survivors of deceased workers.” – Center on Budget and Policy Priorities

Clearly, baby boomers have been the largest generation paying into the social security system for some time. However, now the rolls of baby boomers social security will shift. As a result, baby boomers will depend upon government benefits and payouts. In addition, many boomers will pay reduced taxes and will not contribute to a pension or 401(k).

In particular, some retirement experts project that social benefits will be replaced by universal basic income. Furthermore, this could happen by the end of the twentieth century. As the number of baby boomers increases as retirees, the number of early retirement incomes for unmarried women is rising. For high-birth cohorts, a large proportion of these values have fallen to 40% for high-birth cohorts. In contrast, the values have fallen less than 1% for non-marital men.

The Dark Cloud Over Social Security

However, there are a growing number of people who have doubts about social security. In fact, 42% of millennials believe they will receive retirement income from Social Security. In addition, about half of Generation Xers, who are now 31-46 years old believe this as well. Many believe that baby boomers social security benefits may only benefit boomers. Just over a third of working millennials have an employer with a subsidized pension plan. However, more than a third do not have a plan. The share of young adults in the US with a full-time job is lower than in previous generations of the same age.

The retirement age for social security was increased, and about half of it has been raised gradually. If changes are not made to social security, the retirement age for Social Security may rise to 66 in 2026. Similarly, those who rely on Social Security are more likely to raise their retirement age to 65 or older.

When to Claim Social Security Benefits   

Boomers want to maximize their monthly Social Security payout by waiting until they claim as late as possible, but the truth is that after years of paying into the system, they are waking up to the fact that they will end up receiving benefits, and they want to know more about how it works. Many baby boomers face a rude awakening, as many expect too much from Social Security. Boomers will be 62 this year, and the number of years they will be eligible for benefits from the current 65-year retirement age will increase.

There are even more grumbles among younger baby boomers, who are studying strategies for when it would be in their best interest to claim their benefits. As baby boomers retire in greater numbers and federal program funding becomes less secure, dependence on Social Security will increase, according to a new report from the Center for Retirement Research at the University of California, San Francisco. But, as more baby boomers become eligible for benefits, the strategy for how benefits are claimed will rise and fall, according to the Institute for Social Policy’s (ISPR) report, “Benefit Eligibility and Benefit Maximization.”

The decline in the replacement rate of social security is partly due to the projected decline in the number of pensioners over the next 30 years. Another factor is the decrease in the retirement age at which benefits are claimed. Furthermore, the decline in benefits is driven by a projected decline in benefits.

Baby Boomers Social Security Wrap Up

Clearly issues with baby boomers social security will continue to be challenging. However, the outlook for younger generations is not as good, considering inflation and the concern with the social security program’s ability to provide benefits. As a result, younger people should make an effort to plan their retirement using savings, investments and creating other income streams that will provide money needed in retirement.

Read More:

Value Investing Books

Retirement Planners

How Much Savings You Should Have at 40

Real Estate Market Predictions

Why Saving Money is Important

The Best Budget App

10 Things to Know Before Starting a Budget

Debt Elimination

Best Gold Coins to Buy

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.