Up to 85% of your Social Security benefits may be taxed, but a new "senior deduction" can cut taxes—unless your income is too high from working in retirement. https://t.co/0f4equGtU7 ...

Everybody knows you’re supposed to delay claiming Social Security benefits, to get the most amount possible. But maybe that conventional wisdom is wrong. https://t.co/CTcgEiRpNZ ...

Everybody knows you’re supposed to delay claiming Social Security benefits, to get the most amount possible. But maybe that conventional wisdom is wrong. https://t.co/ikunMTVDly ...

Everybody knows you’re supposed to delay claiming Social Security benefits, to get the most amount possible. But maybe that conventional wisdom is wrong. https://t.co/R7PsTRQvAm ...

Everybody knows you’re supposed to delay claiming Social Security benefits, to get the most amount possible. But maybe that conventional wisdom is wrong. https://t.co/h3oDd1uJ8k ...

Core Insights - The article discusses the financial concerns of a couple, Raymond and his wife, as they approach retirement despite having substantial savings and income sources [1][2]. Financial Situation - Raymond, aged 72, has $1.5 million in savings, a fully paid-off home, and no debt, alongside a $110,000 salary and Social Security benefits [1][2]. - The couple receives approximately $55,000 annually from Social Security, which is expected to increase due to cost-of-living adjustments [3]. Retirement Planning - The couple is advised to assess their desired lifestyle in retirement and compare it with their current financial situation to determine readiness [2]. - A common guideline for retirement withdrawals is the 4% rule, allowing for an initial withdrawal of $60,000 from their savings, which could sustain them for 30 years if managed properly [4]. Budgeting for Retirement - To evaluate if their income is sufficient, the couple should create a new budget based on projected retirement spending, considering potential decreases in some expenses and increases in others, such as travel [6].

If you’re thinking about retiring abroad, you’re in good company. According to the Foreign Affairs Manual, more than 760,000 Americans received Social Security benefits while living outside the United States in 2024. (1) Must Read Furthermore, a survey by Western & Southern Financial Group suggests one in three Americans are considering joining them. (2) One of the main reasons is cost, as many countries offer a lower cost of living than the U.S. When you’re relying on Social Security as a main sourc ...

Well, seniors are bracing for another modest cost of living increase in their Social Security benefits next year. But tariffs could make that boost feel even smaller. And if there's a government shutdown that delay September CPI data, the Social Security Administration might not finalize the cost of living adjustment, known as COLA, till the Bureau of Labor Statistics releases the numbers.Joining me now to talk about all this, got Yahoo Finance senior columnist, Carrie Hannon. Carrie, great to see you first ...

Group 1 - The article discusses retirement planning, focusing on the individual's current financial situation, including a 401(k) balance of $680,000, savings of $150,000, and a monthly pension of $1,600 [2][3] - The total annual income from the pension is calculated to be $19,200, providing a strong baseline for retirement needs [3][4] - The combined total from the 401(k) and savings allows for an estimated withdrawal of $33,200 in the first year of retirement, leading to a total annual income of $52,400 before taxes [4][5] Group 2 - After accounting for taxes, the individual can expect approximately $48,000 per year to spend, equating to about $4,000 in monthly expenses [4][5] - The potential impact of Social Security benefits is analyzed, with estimated annual income ranging from $63,740 to $74,216 depending on retirement age and last year's salary [6] - Different scenarios for Social Security benefits are presented, showing annual benefits of $11,340 at age 62, $17,064 at age 67, and $21,816 at age 70 based on a $70,000 salary [7]

Core Insights - Almost all retirees in the United States rely on Social Security retirement benefits as a significant income source, but these benefits may not meet their financial needs [1][10] - The average Social Security benefit varies by age, with higher benefits for older retirees, reflecting the impact of delaying claims [4][9] - Social Security benefits are designed to replace only about 40% of pre-retirement income, while retirees typically need to replace around 80% to 90% of their income [11][12] Summary by Sections - **Average Social Security Benefit** - The average benefits for retirees increase with age, with specific amounts listed for ages 62 to 70 [8] - As of June 30, the average benefits are as follows: $1,377 at age 62, increasing to $2,188 at age 70 [8] - **Income Replacement** - Social Security is not intended to be the sole source of income for retirees, as it only replaces a portion of their earnings [11] - The benefits formula is progressive, favoring lower earners, which means higher earners may receive a larger benefit but still insufficient for living expenses [12]