Core Insights - Maximizing Social Security benefits is crucial for retirees, as it serves as the primary income source for many households aged 65 and older [1][2] Claiming Strategy - The optimal age to claim Social Security benefits is influenced by life expectancy projections, with the CDC providing updated data to guide retirees [2][10] - Claiming Social Security at age 62 results in lower monthly benefits compared to waiting until full retirement age [4][5] - The Social Security Administration calculates benefits based on the primary insurance amount, which varies depending on the retiree's birth year [5][6] Break-even Analysis - The break-even age is the age at which delaying benefits results in higher lifetime benefits; for those claiming at full retirement age versus age 62, this age is approximately 78 years and 8 months [8][9] - Delaying benefits until age 70 can significantly increase monthly payments, with a break-even age of about 85 and a half years for that decision [11] Life Expectancy Data - The latest CDC data indicates that a 65-year-old can expect to live an average of 19.7 more years, suggesting that delaying benefits may be advantageous [10][13] - Life expectancy varies by gender and ethnicity, with women and certain ethnic groups generally living longer than average [13][14] Considerations for Claiming - High earners may benefit from delaying benefits until age 70, especially if their spouse is younger, as survivor benefits are based on the higher earner's amount [15] - Individuals with chronic health issues or those needing immediate income may consider claiming benefits earlier [17] - Lower-earning spouses might find it beneficial to claim benefits as soon as possible, while the higher earner delays until age 70 to maximize household benefits [18][19]

At the same time, while owning a home can provide that safety net, the expenses of maintaining it can still be costly — especially during retirement.Homeowners — at any age — have the advantage of building equity, which can be a very useful safety net to tap into. Plus, once you have paid off the mortgage, you don’t have expenses like rent weighing you down.First and foremost, you may have more options for financial security if you are a homeowner.If you’re asking yourself the same questions, here are some ...

One of retirees' biggest fears is running out of money at some point in time. And that's understandable. Whether you're retiring with $500,000 to your name or $5 million, it's natural to want to make your savings last as long as possible. Here's how. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks » Image source: Getty Images. 1. Keep your money invested strategically A lot of people ...

Key Takeaways Getting laid off right before retirement can feel overwhelming, but you can still achieve a financially secure retirement. If you get laid off unexpectedly, take a breath, review your finances, and avoid rushed decisions. Avoid dipping into your 401(k) or claiming Social Security early, as those moves can cost you more in the long run. If you've just been laid off and retirement is around the corner, it may be stressful, especially if you were looking to save more before leaving the ...

Core Viewpoint - The article discusses the urgent need to rethink retirement in the U.S. due to demographic changes and the impending crisis in the Social Security system, as highlighted by BlackRock CEO Larry Fink [4][5]. Demographic Changes - The number of Americans aged 65 and older is projected to increase from 58 million in 2022 to 82 million by 2050, representing a 42% rise [2]. - This age group will grow from 17% to 23% of the total U.S. population, indicating a significant demographic shift [2]. Retirement Age Debate - Fink advocates for raising the retirement age, suggesting that the current standard of 65 is outdated and originates from a time when life expectancy was much lower [4][6]. - South Carolina Senator Lindsey Graham supports this view, arguing that Congress should require longer working periods before retirement benefits are accessible [3]. Social Security Concerns - The Social Security Administration estimates that the program could be depleted as early as Q4 2032, which would necessitate cuts to benefits [5]. - Fink emphasizes that the problem will worsen as the oldest Generation X members retire, who are primarily reliant on 401(k) plans [6]. Counterarguments - Labor economist Teresa Ghilarducci challenges Fink's perspective, arguing that not all Americans are living longer and that many face health issues that limit their ability to work longer [8][11]. - A 2024 report indicates that 64% of surveyed individuals did not retire as planned, with 58% retiring earlier than intended due to health or job loss [12]. Financial Planning for Retirement - The article suggests that individuals should take control of their retirement planning by managing finances, deciding when to take Social Security, and investing wisely [14]. - Working with a financial advisor can potentially increase net returns by about 3% over time [15]. Investment Strategies - Diversifying retirement portfolios, including investments in ETFs and alternative assets like gold, is recommended to mitigate risks associated with market volatility [20][21]. - Gold has seen a price increase of over 65% in the past year, with further growth anticipated, making it an attractive option for retirement savings [21].

But what exactly do Friedman and Antoni mean when they say Social Security is a Ponzi scheme, and where do the concerns come from?And more recently, the issue has come back into the spotlight after President Donald Trump fired a labor statistics official in August 2025, filling the spot with economist E.J. Antoni — who has called Social Security a “Ponzi scheme” that “you’re not going to be able to sustain (3).”Most notably, Nobel Prize-winning economist Milton Friedman once called Social Security “the bigg ...

Core Insights - The article discusses the complexities of Social Security benefits and the implications of delaying claims, emphasizing the importance of considering longevity risk and opportunity costs in retirement planning. Group 1: Social Security Benefits - Average life expectancy in the U.S. is approximately 78.4 years, but individual outcomes vary widely [1] - Insufficient funding could lead to a 23% reduction in benefits for retirees by 2032, prompting many nearing retirement to reassess their expected benefits [2][3] - Delaying Social Security benefits can increase monthly payments by up to 8% per year, but this may not always result in a higher total lifetime payout if longevity is underestimated [4][5] Group 2: Breakeven Analysis - Financial advisors often use a "breakeven age" analysis to determine when delaying benefits becomes advantageous, which varies based on individual circumstances [6] - For example, a person entitled to $2,000 per month at full retirement age of 67 would need to live beyond 78 years and eight months to benefit from delaying until 70 [6] - Opportunity costs and the time value of money are often not accounted for in traditional breakeven analyses, which can mislead retirees [7][10] Group 3: Opportunity Cost - Delaying Social Security may require retirees to withdraw from savings or tax-advantaged accounts, potentially forgoing investment returns [9] - Factoring in opportunity costs can push the breakeven age significantly further out, requiring individuals to live longer to benefit from delayed claims [10][11] Group 4: Financial Planning Strategies - Retirees should consider maintaining a significant emergency fund to avoid early withdrawals from investments if they choose to delay Social Security [12] - Utilizing high-yield accounts can help grow emergency funds while keeping pace with inflation [13] - Working with a qualified financial advisor can help retirees navigate the complexities of Social Security decisions, accounting for factors like inflation and healthcare costs [14][16]

Core Insights - The average American worker aims for a retirement savings target of $1.6 million to last for 22 years [1] Group 1: Retirement Savings Strategies - Rolling over 529 Funds to a Roth IRA allows individuals to transfer up to $35,000 from a 529 account into a Roth IRA if the account has been open for 15 years or more [3] - Individuals aged 50 and above can make catch-up contributions to their retirement accounts, with the IRA catch-up contribution amount set at $1,100 for 2026, and 401(k) accounts having a base limit of $24,500, with additional contributions allowed for those aged 60 to 63 and 50 and above [4][5] Group 2: Withdrawal Rules - The minimum age for penalty-free withdrawals from tax-advantaged retirement accounts is 59 ½, although regular income taxes may still apply [6] - The IRS provides exemptions to the 10% early withdrawal penalty for specific circumstances, such as qualified college expenses or total and permanent disability [7] Group 3: Social Security Benefits - Social Security can be claimed as early as age 62, but waiting until age 70 maximizes the benefit amount [8]

Core Insights - Social Security is facing a financial crisis that requires legislative action, although it is not at risk of disappearing entirely [2][3] - Potential benefit cuts are likely within the next decade, influenced by revenue and legislative decisions regarding trust fund management [3] Investment Strategies - It is advisable for individuals nearing retirement to develop strategies to supplement Social Security income, with ETFs being a recommended option [4] - The Invesco S&P 500 High Dividend Low Volatility ETF (SPHD) is highlighted for its focus on stable, high-dividend companies, making it suitable for retirees seeking steady income [5] - The Vanguard High Dividend Yield ETF (VYM) is noted for investing in established companies across various industries, which helps mitigate concentration risk [6] Risk Considerations - Investors are encouraged to assess their risk tolerance and ensure they are investing in funds with adequate yields to compensate for potential Social Security cuts [7][8]

Core Viewpoint - Annuities, while providing a steady income stream during retirement, come with significant fees and complexities that may not make them the best option for all investors [1][2]. Group 1: Fees and Commissions - Annuities require substantial initial investments to yield meaningful monthly payments, and insurance companies profit significantly from these products [3][4]. - Fees and commissions for annuities can range from 1% to 8%, meaning that a $100,000 investment could result in only $95,500 being invested after $4,500 in fees [4]. - High fees and opportunity costs associated with annuities can lead to financial losses for investors compared to other investment options like S&P 500 index funds [4]. Group 2: Complexity and Accessibility - Annuities are not as liquid as checking accounts, and early withdrawals can incur penalties that affect monthly payments [6]. - The complexity of annuity contracts can lead to misunderstandings among investors and advisors, making it difficult to access funds in emergencies without incurring significant costs [7]. - It is advisable for investors to maintain an emergency fund covering six to twelve months of living expenses before committing to an annuity [7].