Are you currently retired and drawing Social Security benefits? Or are you planning to retire in the next few years, and carefully watching news on Social Security? Either way, we have to share what might be disappointing news for you, but it’s important to keep you updated on these issues so that you can make the best possible plan for your retirement.
The Board of Trustees of the Social Security Trust Funds has already announced that next year’s Cost of Living Adjustment (COLA) is likely to range between 0 and 0.7 percent. That means seniors drawing benefits might not receive a much-hoped-for raise in their checks, or the increase could be disappointingly small.
Social Security beneficiaries usually look forward to each fall’s COLA announcement, and are happy to receive slightly larger benefits checks the following January. But while this is by no means an official announcement, it does appear that the forecast for a 2017 COLA is grim. If you’re already retired and drawing your benefits, remember that you can’t count upon a COLA in any given year, and start making necessary adjustments to your budget now. If you’re still planning for retirement, we want to remind you of two important things you should remember.
The first is that you can utilize strategies to maximize your Social Security benefits. Working up until your full retirement age is the only way to ensure you will receive your full schedule benefit amount, and working beyond full retirement age can net you even larger benefits when you do eventually retire. Couples also have a few different filing options available to them, and it’s important to seek expert advice on how to file for benefits before making permanent decisions. Just remember when it comes to Social Security, you must be “present” to win.
The second thing we want to tell you, is that you should plan another form of retirement income that provides for your expenses. We can never stress this enough: You can’t rely upon Social Security to fund your entire retirement. And since COLA is never guaranteed in any given year, your other form of income should provide room in your budget. You can even establish a stream of income that increases according to inflation, if you desire.
Contact us for more information, and we can help you maximize your Social Security benefits. Then, we can discuss the different types of retirement income available to you, and help you make a plan that helps you reach your retirement goals.
