Suze Orman: These 3 Curveballs Could Derail Your Retirement Plan

Core Insights - Suze Orman emphasizes the importance of understanding potential challenges as retirement approaches, highlighting three key issues that could impact retirement plans Group 1: Continuing to Work for Pay - The Employee Benefit Research Institute's survey indicates that 75% of working individuals expect to earn money during retirement, but only 30% of retirees are actually doing so [2][3] - The disparity may arise from age differences, as those still working are likely to be younger retirees compared to those who are not working [3] - Economic factors also play a role, particularly the impact of earning income on Social Security benefits, where exceeding a certain income threshold can significantly reduce benefits [4][5] Group 2: Social Security Considerations - If retirees begin collecting Social Security before reaching full retirement age, they risk losing a portion of their benefits if their earnings exceed $23,400 [4][5] - An example illustrates that a retiree earning $50,000 while collecting Social Security could see their monthly benefit reduced from $2,000 to approximately $891.67 due to exceeding the income limit [5] - Conversely, a retiree earning below the threshold can retain their full Social Security benefits, as demonstrated by another example [6] Group 3: Planning Implications - The key takeaways suggest that individuals may overestimate their ability to work for pay in retirement, necessitating careful planning [7] - It is advisable for those intending to work post-retirement to delay taking Social Security benefits until reaching full retirement age to avoid reductions [7]