Core Insights - Many individuals are facing challenges in managing living costs, leading to potential reductions in retirement savings this year [1] - Emphasis on the importance of maximizing 401(k) contributions, especially to capture company matches [5][7] Group 1: Retirement Savings Strategies - Individuals should aim to secure the full company match in their 401(k) plans, as this represents free money that can significantly grow over time [5] - For instance, if an individual saves $6,000 last year but can only contribute $1,000 this year, they should still aim to contribute at least the $3,000 required to receive the full match [5] - Failing to claim the full match can result in substantial lost investment gains; for example, not claiming a $2,000 match could mean forgoing over $20,000 in 30 years with an 8% annual return [6] Group 2: Social Security Insights - Many retirees overlook potential Social Security benefits, with strategies that could increase retirement income by as much as $23,760 annually [8] - Understanding and maximizing Social Security benefits is crucial for ensuring a secure retirement [8][9]

Summary of Key Points Core Perspective - The article discusses strategies to maximize Social Security benefits, emphasizing the importance of work history and retirement age in determining the benefit amount. Group 1: Work History - Creating a work history of 35 years is essential for maximizing Social Security benefits, as the benefit amount is calculated based on the highest 35 earning years [3][4]. - If an individual has worked for fewer than 35 years, zeros will be recorded for the years not worked, which can negatively impact the benefit calculation [4]. Group 2: Retirement Age - Working until the Full Retirement Age (FRA), typically around 67, allows individuals to receive 100% of their Social Security benefits. Claiming benefits at 62 results in a permanent reduction of up to 30% [5][6]. - For example, a monthly benefit of $2,000 at 67 would be reduced to $1,400 if claimed at 62, leading to a total loss of $36,000 over five years [5]. Group 3: Delaying Benefits - Delaying retirement until age 70 can increase Social Security benefits by 24%, as payments increase by 8% for each year worked past FRA. Thus, a $2,000 monthly benefit could rise to $2,480 if claimed at 70 [7].

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Core Insights - The IRS is now accepting tax returns for the 2025 tax year, and submitting taxes early may expedite refunds [1] - Tax refunds should not be viewed as free money; they represent funds that were previously loaned to the government without interest [3][4] Financial Strategies - Instead of spending tax refunds on non-essential items, individuals are encouraged to use the funds to improve their financial situation [3][4] - Suggested uses for tax refunds include adding to emergency funds, boosting retirement savings, paying off high-interest debts, and addressing minor home or car repairs to prevent larger costs later [7]

Core Insights - Social Security benefits received a 2.8% cost-of-living adjustment at the start of 2026, but the average monthly benefit of $2,071 (approximately $25,000 annually) may still be insufficient for many retirees [1]. Group 1: Options for Boosting Retirement Income - Returning to work is a viable option for retirees, as there is a common misconception that working while collecting Social Security is prohibited. However, those under full retirement age may face an earnings test that could affect their benefits [3]. - Part-time job opportunities can be found in various fields, including substitute teaching or temporary positions in previous professions, as well as exploring new roles such as bartending [4]. - Joining the gig economy offers flexibility, allowing retirees to earn income on their own schedule through services like pet-sitting or ridesharing. Starting a business is also an option, though it may require careful consideration of start-up costs [5]. Group 2: Monetizing Home Assets - Homeowners have the potential to generate income by renting out a room or a separate area of their home, provided they have sufficient space [6]. - For those who travel frequently, short-term rentals can be a lucrative option, especially if the home is located in a desirable area. This allows homeowners to take advantage of their absence to earn additional income [7].

Key Takeaways Social Security benefits change depending on your current and past income, and the age at which you started claiming benefits.The 2026 cost-of-living adjustment boosts benefits by 2.8%.The average retired worker gets more than $2,000 per month in Social Security benefits in 2026. The average Social Security benefit in 2026 is $2,071 per month. Social Security benefits vary for each person, depending on a few factors. You can start receiving Social Security retirement benefits as early as ...

Core Insights - The article discusses the importance of planning for retirement, emphasizing the role of Social Security benefits and investment strategies in determining retirement income [24]. Social Security Benefits - Individuals can expect approximately $3,200 per month or $38,400 annually in Social Security benefits if claimed at age 67, which can increase to $3,968 per month or $47,616 annually if benefits are delayed until age 70 [1]. - Future earnings may increase Social Security credits, but individuals will not lose any credits in the years ahead, allowing for budget planning based on guaranteed income [3]. Retirement Planning - The article suggests that individuals in their early 50s, like a 52-year-old with $680,000 in a 401(k) and an annual income of $115,000, should start planning their retirement budget [4]. - It highlights that individuals in their 60s risk missing opportunities to adjust their savings, as they have limited time left before retirement [6]. - For those in their 40s, there is a risk of premature planning, as they are not yet halfway through their careers [7]. Investment Strategies - The article outlines two main investment strategies: a growth strategy during working years, which typically involves higher-risk investments, and a retirement investment strategy that focuses on safer positions to maintain wealth [8][9]. - A hypothetical scenario illustrates that with consistent contributions of 10% to a retirement fund, an individual could accumulate over $3.3 million by age 67, generating a minimum of $168,000 per year in interest payments during retirement [13][17]. - Different investment approaches, such as a mixed-asset portfolio or investing entirely in an annuity, can significantly impact retirement income and risk exposure [14][15]. Tax Considerations - The article emphasizes the importance of understanding after-tax income, noting that withdrawals from a 401(k) will incur income taxes, which can affect overall retirement income [21]. - It suggests that individuals should consider state and local income taxes when planning their retirement budget, as these can significantly impact net income [27]. Conclusion - The article concludes that a realistic retirement budget is influenced by Social Security benefits, savings plans during working years, and investment management strategies in retirement [24].

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. A retirement budget balances your expected income in retirement with your expected living expenses and taxes. Financial planners may use some rules of thumb to generate estimates of how much you are likely to receive in income and use to pay your costs after getting a good understanding of your goals, habits and circumstances. In your situation, it’s likely you can live much as you are now after you stop ...

Key Points Although you're allowed to work while receiving Social Security, in some cases, your income could result in withheld benefits. You only have to worry about that if you haven't yet reached full retirement age. Make sure you're aware of Social Security's earnings-test limits so your finances aren't thrown for a loop, The $23,760 Social Security bonus most retirees completely overlook › Even if you're entitled to a pretty generous monthly benefit from Social Security, that check may not ...

Core Insights - The average Social Security benefit in 2026 will be $2,071 per month [1][6] - Social Security benefits are influenced by individual earnings over the highest-earning 35 years [2] - The 2026 cost-of-living adjustment (COLA) will increase benefits by 2.8%, translating to an additional $56 per month for the average retired worker [4][6] Benefit Structure - Individuals can start receiving Social Security retirement benefits at age 62, but payments will be lower than if claimed at full retirement age (FRA), which is 67 for those born in 1960 or later [1] - Benefits increase for each year of delay in claiming up to age 70 [1] Financial Planning Implications - The average benefit may not be sufficient for retirement living expenses, prompting the need for additional funding sources such as 401(k)s, IRAs, or part-time work [3] - A significant portion of respondents in an AARP survey indicated that the COLA increase will not adequately keep pace with inflation [4]