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].