5 Most Important Retirement Questions

As you near the end of your working life, you are probably wondering about a lot of different things. With so many different things to think on, you may even be asking, “What are the five most important retirement questions I could ask?” Getting a grip on every aspect of your retirement planning is, sadly, made to be more complicated than it has to be. Though you should absolutely consult with trusted professionals to secure your financial future as your last day approaches, these questions will help you frame the discussion as you meet with your advisor.

Who are you spending retirement with?

This question has two parts: financial and relational. From the standpoint of your money, you must look into who is going to rely on the income from your investments – you and your spouse, any dependent children, etc. Knowing who all falls into this category will help you figure out how much to save.

From the standpoint of other people, the question turns into a consideration of your social environment. How do you plan to fill your days when work is no longer part of the equation? The ability to meet new people and have stimulating conversation is a key to happiness for retirees, so consider which groups you’d like to join up with.

What do you plan to do?

Much like understanding how many people you’ll be supporting is important, having a clear picture of what it is you want to accomplish in retirement is a big key. Are you hoping to travel all over Europe? Have you always dreamed of volunteering for a summer or two on an archaeology dig in Guatemala? Your golden years are certainly a time to be enjoyed, but until you have an idea of where you would like to go, you have no real clue as to how much you’ll need to have saved in order to fund that lifestyle.

When can you retire?

Once you have figured out what your desires are, you can plan a budget for when you leave the office for the last time. Based on how your wealth projects, you can spend the remaining years you have at work pushing money into your savings accounts and investment portfolio to support that. Though you might have a bit of trouble catching up with only two or three years to go, you can still make some course corrections that allow you to achieve far more than you might have first guessed. The key will be to look deep into your expenses for areas to make cuts.

Where are you going to live?

As you begin looking to trim the fat in your spending, one of the first places you might consider is your home. This can mean something as simple as downsizing to reflect the fact you have an empty nest or relocating to an entirely different city with a lower cost of living. It can be exceedingly difficult for you to leave the cherished memories of the house your family grew up in behind, but keep nothing sacred – your financial health and well being depends on your ability to make smart decisions about where your money goes. When you add up the cost of upkeep and utilities, it could be an easier decision than you would think.

Why should you stop working?

Sure, there are plenty of reasons to give up being a desk jockey when you reach retirement age, but the fact of the matter is you don’t have to quit drawing a paycheck altogether. Thanks to a shortage of workers, there are a variety of industries looking for experienced professionals to lend their expertise on a part- or full-time basis. In addition to giving you the opportunity to pass on your wisdom to another generation, you will be able to continue earning an income that supports your dreams for the future with much less pressure than your time in the corporate world. Encore, a service designed to connect retirees with non-profit organizations needing help, is a great place to start.

Ten Financial Risks of Retirement

When you sit down with your spouse and financial advisor to do some retirement planning, you make the best effort you can to prepare for the future.  Like it or not, these ten financial risks of retirement can sneak up on you and make your golden years a struggle.  Thankfully, there are ways to minimize these challenges by formulating a strategy that helps your assets continue to grow despite any blips in the economy or unexpected expenses.  By understanding the possibilities presented by the factors listed below, you will be in an advantageous position when it comes time to lay out your strategy for the years leading up to your final day on the job.
Lifespan
Though it’s tough to imagine a long retirement being a bad thing, the fact of the matter is you are far more likely to live to 85 than you think.  Advances in medicine, not to mention good genes and healthy habits, could have you pushing 95 or 100 – and your money has to make it there, too.  Invest as though you’ll live into triple digits and you’ll be in great shape.
Inflation
It’s a simple fact of life that the cost of everything increases over time.  Consider the purchasing power of $10 in 1980 was equivalent to almost $21 just 20 years later in the year 2000.  What can you do to keep your money from only going half as far?  Invest in inflation-protected securities or industries likely to gain as prices increase.
Market Dips
As the years after the sub-prime mortgage collapse in 2008 have shown, the market is a fickle mistress.  The instability of the global financial system continues to turn stomachs all over the planet, but the best thing you can do is diversify as much as possible.  This goes beyond the size of company or type of assets in your portfolio, too – pick companies from different regions so problems in one are less likely to affect your bottom line.
Early Maturation
Though you might have a handful of bonds that aren’t set to come good for a while, be mindful of the possibility they will be called early.  Though this is an opportunity for reinvestment, of course, you might find it difficult to locate something with a similar return.  Stagger your maturity dates so that your repositioning is less likely to happen all at once.
Cashing Out in a Low Market
For most people, a 401(k) or mutual fund contribution is based on the purchasing power of what they’ve set aside – when the prices are down, they get a lot more than when prices are high.  Though you might not think it too much of an issue, it can be a major problem if you are looking to sell during a downturn.  Your only option is to get fair market value, which means you are losing out on the possibility of benefiting from a future upswing.  Make sure you have plenty saved to cover your expenses for as long as possible so you can allow your portfolio to pick back up.
Fraud
Sadly, there’s not a year that goes by in which a group of senior citizens are robbed of their wealth by spurious characters going door to door.  Though you are fit and sharp now, where might you be in a couple decades?  Do your best to educate yourself now about the risks, involving trustworthy family members, if possible.  By having a background knowledge, as well as someone to act as your back-up when a too-good-to-be-true opportunity pops up, you have already set up a first line of defense.
Taxes
You might assume that, without a steady job, taxes aren’t something you will have to focus on much in your life after work.  Well, that’s not exactly the case.  Changes in the tax code happen all the time, subjecting earnings from investments or capital gains to a varying degree of vulnerability.  Sometimes thousands or tens of thousands of dollars could be at stake.  On the front end, you can put after-tax funds into Roth IRAs, but more complex dealings should be done with the help of a trusted financial professional.
Medical Costs
Adults who have cared for their parents during the last several years of their life know how much time is spent in the doctor’s office.  Even the fittest of people still has one or two prescriptions, an annual physical, and some wellness visits to make each year.  That leaves a lot of copays.  One way to help cover costs you face outside of Medicare is to create a Health Savings Account.  This will allow you to rollover any savings from year to year and, much like you did with your investments before retiring, you can make a set contribution each month.
Chronic Care
We all would like to think we will be on top of our game until our very last breath, but the fact of the matter is quite different.  More and more people are finding health care services are necessary during their final years, which can be fairly minimal (someone stopping by to administer medications) to very extensive (living in a medical home).  You can purchase insurance policies to cover just this kind of expense or set up specific accounts to be paid only when they are needed, but this area of financial planning is somewhat new, so you might want to consult with your advisor about the best option.
Unexpected Events
It might seem like Mother Nature would be the last thing for any of us to worry about, but sometimes disasters arise and leave people in the lurch.  This doesn’t take into account a fire or some other property damage that destroys what most people consider their most important investment – their home.  Regardless of where you live, it’s crucial as you head into retirement that your insurance coverage is good enough to provide security in the event of a major problem.

When you sit down with your spouse and financial advisor to do some retirement planning, you make the best effort you can to prepare for the future.  Like it or not, these ten financial risks of retirement can sneak up on you and make your golden years a struggle.  Thankfully, there are ways to minimize these challenges by formulating a strategy that helps your assets continue to grow despite any blips in the economy or unexpected expenses.  By understanding the possibilities presented by the factors listed below, you will be in an advantageous position when it comes time to lay out your strategy for the years leading up to your final day on the job.
Lifespan
Though it’s tough to imagine a long retirement being a bad thing, the fact of the matter is you are far more likely to live to 85 than you think.  Advances in medicine, not to mention good genes and healthy habits, could have you pushing 95 or 100 – and your money has to make it there, too.  Invest as though you’ll live into triple digits and you’ll be in great shape.
Inflation
It’s a simple fact of life that the cost of everything increases over time.  Consider the purchasing power of $10 in 1980 was equivalent to almost $21 just 20 years later in the year 2000.  What can you do to keep your money from only going half as far?  Invest in inflation-protected securities or industries likely to gain as prices increase.
Market Dips
As the years after the sub-prime mortgage collapse in 2008 have shown, the market is a fickle mistress.  The instability of the global financial system continues to turn stomachs all over the planet, but the best thing you can do is diversify as much as possible.  This goes beyond the size of company or type of assets in your portfolio, too – pick companies from different regions so problems in one are less likely to affect your bottom line.
Early Maturation
Though you might have a handful of bonds that aren’t set to come good for a while, be mindful of the possibility they will be called early.  Though this is an opportunity for reinvestment, of course, you might find it difficult to locate something with a similar return.  Stagger your maturity dates so that your repositioning is less likely to happen all at once.
Cashing Out in a Low Market
For most people, a 401(k) or mutual fund contribution is based on the purchasing power of what they’ve set aside – when the prices are down, they get a lot more than when prices are high.  Though you might not think it too much of an issue, it can be a major problem if you are looking to sell during a downturn.  Your only option is to get fair market value, which means you are losing out on the possibility of benefiting from a future upswing.  Make sure you have plenty saved to cover your expenses for as long as possible so you can allow your portfolio to pick back up.
Fraud
Sadly, there’s not a year that goes by in which a group of senior citizens are robbed of their wealth by spurious characters going door to door.  Though you are fit and sharp now, where might you be in a couple decades?  Do your best to educate yourself now about the risks, involving trustworthy family members, if possible.  By having a background knowledge, as well as someone to act as your back-up when a too-good-to-be-true opportunity pops up, you have already set up a first line of defense.
Taxes
You might assume that, without a steady job, taxes aren’t something you will have to focus on much in your life after work.  Well, that’s not exactly the case.  Changes in the tax code happen all the time, subjecting earnings from investments or capital gains to a varying degree of vulnerability.  Sometimes thousands or tens of thousands of dollars could be at stake.  On the front end, you can put after-tax funds into Roth IRAs, but more complex dealings should be done with the help of a trusted financial professional.
Medical Costs
Adults who have cared for their parents during the last several years of their life know how much time is spent in the doctor’s office.  Even the fittest of people still has one or two prescriptions, an annual physical, and some wellness visits to make each year.  That leaves a lot of copays.  One way to help cover costs you face outside of Medicare is to create a Health Savings Account.  This will allow you to rollover any savings from year to year and, much like you did with your investments before retiring, you can make a set contribution each month.
Chronic Care
We all would like to think we will be on top of our game until our very last breath, but the fact of the matter is quite different.  More and more people are finding health care services are necessary during their final years, which can be fairly minimal (someone stopping by to administer medications) to very extensive (living in a medical home).  You can purchase insurance policies to cover just this kind of expense or set up specific accounts to be paid only when they are needed, but this area of financial planning is somewhat new, so you might want to consult with your advisor about the best option.
Unexpected Events
It might seem like Mother Nature would be the last thing for any of us to worry about, but sometimes disasters arise and leave people in the lurch.  This doesn’t take into account a fire or some other property damage that destroys what most people consider their most important investment – their home.  Regardless of where you live, it’s crucial as you head into retirement that your insurance coverage is good enough to provide security in the event of a major problem.

Retirement Income Plan

It’s only natural, after decades on the job, for you to feel a bit of trepidation as the day arises when your retirement income plan kicks in. For years, you have been able to count on a steady paycheck and the possibility of an incremental raise from time to time. Once you leave the workforce, you will be able to count on a monthly check from the Social Security Administration and payouts from the various accounts set up as part of your retirement planning – stocks and mutual funds that are subject to the whims of the market. If you’ve learned anything from the current state of the economy, it’s that your portfolio can take a hit one day and have you flying high the next. How do you create some stability when the financial sector is as volatile as a nitroglycerin plant during an earthquake?
Here are a few tips to keep you moving in the right direction, when the Dow Jones is a roller coaster:
Live Within Your Means
Making a budget is a basic practice for many households in all strata of society. Sticking to one, however, proves to be too challenging – they either expect to live like princes or attempt to be paupers and fall short either way. Sit down with your spouse and make a realistic target for your spending, leaving aside extra money for savings accounts and additional investments, as well as activities both of you can enjoy. Ideally, you will have begun this practice well before you retire – spending your last year at work spending as though you are already retired is a good idea – but even creating a plan in the first month or two after you leave the office behind is acceptable.
Diversify Your Portfolio
It’s likely you’ve heard this advice from your financial planner and investment magazines over and over, but it goes far beyond the types of stocks or mutual funds you own. Sure, you should have a variety of low- and high-risk accounts to provide a measure of security against a market in flux, but you might find other areas are being neglected. You probably have a home that acts as one of your major assets, but do you own other properties that can be rented or sold? Have you sought ways to solidify your percentage of precious metals in the overall picture? Take an honest look at your situation and see how things could be reshuffled to maximize your return.
Seek Out Earning Opportunities
Without a doubt, you have earned a break from the daily grind associated with a 9-to-5 job. Does that mean you ought to give up on employment altogether? Absolutely not – and that doesn’t mean you should be greeting customers at your local retail chain. Chances are good your experience can be put to good use in a variety of ways. If you were in advertising, for example, you could begin consulting with small businesses part-time to help them grow. This will allow you the fulfillment of continuing to contribute to society without having the pressure of someone breathing down your neck. Who knows? The freedom might unleash some creative talents you forgot you had!

Best Retirement Plan Companies

Saving for life after work is a big deal, so it is natural that you will search out the best retirement plans companies around. The number of retirees is growing exponentially thanks to the Baby Boom and organizations of all kinds are attempting to grab market share by devising ways to provide retirement planning services. With the airwaves being flooded with commercials and conflicting reports in print media, how can you tell which one to choose? The simplest answer is to consult with a trusted financial planner, someone who will take the time to understand your goals and plans, then make recommendations to help bring those dreams to life. If you want to get some ideas before you meet with a professional, the following companies all have good reputations:

T. Rowe Price

Based on the sheer variety of plans available, T. Rowe Price is a popular choice for those who are close to retirement and those who have a few decades to go. Whether you are three years out and looking to make a target-date fund to solidify your portfolio or have a little bit more room to maneuver, you will have access to personal advice to secure your future.

Fidelity

Individuals who have a better understanding of how the stock market works, but don’t want to fly without a safety net will find the resources at Fidelity more to their liking. Much like T. Rowe Price, this is a larger financial services company with a decades-long history of providing the full range of banking services for customers of all kinds. You will have access to advisors, as well as the ability to make adjustments to your risk profile or even trade shares online.

Scottrade

If you are looking for a hands-on approach to your investments and are internet-savvy, then Scottrade may be the company for you. Designed as an entry to the market for those with lower starting assets, this organization has grown quickly over the last decade as a center for trading online. Though there are some professionals who can provide guidance on your options, the programs are generally set up to be managed day-to-day by the investor themselves.

Decimal

Are you self-employed? Wondering how to create a retirement account similar to a large corporation? Decimal provides specialized 401(k) plans and Roth IRAs for sole proprietorships, partnerships, and corporations whose owners are the only employees. It serves a small market segment, but Boomers with an entrepreneurial mindset will enjoy the ability to develop an investment portfolio in line with the average worker at a big company.

These are just a few of the many choices you have when it comes to investing your hard-earned dollars, which is why it’s important to do some research on your own. Check with reputable resources, like Consumer Reports or other watchdog groups, while asking around amongst your friends and family. Find out what people like and don’t, as well as how helpful the individual agents are. You’ll be surprised how far a few questions will get you, and how much safer the financial aspect of your golden years will be.

Learn How Social Security Evolved

Signed into law on August 14, 1935 by Franklin Delano Roosevelt, a limited form of what we now call Social Security has been in place since January of 1937. During the Great Depression, more than half of senior citizens after Retirement were in poverty and the “social insurance” plan was developed by the President’s Committee on Economic Security as a means to combat it. In the beginning, the program was designed to provide benefits to the retired and unemployed, as well as a lump-sum at death.
From the start, the limitations imposed by the program were controversial: benefits were offered for certain professions, leaving out women and minorities in large numbers. Exclusions that kept nurses, teachers, social workers and many others from claiming benefits meant barely more than half of the American workforce received help. In addition to stipulations already in place “just big enough for the majority of Negroes to fall through,” as the NAACP protested, much of the authority for distributing aid was given to the states to appease Southern congressmen. As a result, black families were often allocated less money than white ones, widening the gap even further.
Of course, there was some debate as to whether the program would be considered constitutional at all. The Supreme Court had been quite forceful in striking down New Deal legislation throughout the mid-1930s and, if not for a timely switch after the Judiciary Reorganization Bill was proposed by President Roosevelt in 1937, it might have been eliminated just as the first death benefits were being paid out. A pair of decisions released on the same day, Steward Machine Company v. Davis and Helvering v. Davis, upheld the right of the federal government to set policies for “the promotion of the general welfare.” Three years later, Ida May Fuller of Ludlow, Vermont received the first monthly Social Security payment.
The program has evolved almost continuously, as concerns regarding holes in the payment plans led to more inclusive amendments in 1939. The number of covered individuals remained relatively stable until separate amendments in 1950 and 1954 extended coverage to nearly everyone, but dependents and spouses of working women were still prevented from receiving death benefits until 1962. It wasn’t until the 1970s, when protection was extended further and cost-of-living adjustments were created almost 40 years after the bill first went into effect, that Social Security as Americans understand it today came into being.
So this was just a brief of Origin of Social Security

4 Ways to Join the FutureYears Discussion

Want to participate in the community here on FutureYears? Make this a part of your Retirement Planning to come up and share your views. You can now do so by using your Facebook or Twitter ID! Just click on the appropriate logo under “Post Success Stories With” in the center of the home page and you will be asked to sign in to the social network you’ve chosen. After a simple click to authorize connecting your profile to FutureYears, you can begin posting questions and providing answers. Of course, if you’d prefer to have a separate account, you can go through the steps on the registration page.
Once inside, you’ll be directed to My Dashboard. Below are a few common questions:
How do I ask a question?
Begin by clicking on the “Ask a Question” button, which will take you to the creation page. There will be two fields for you to fill out: the upper one for the topic you’re interested in (Life Insurance, Home Health Providers, etc.) and the lower one for the question itself. Once you have filled both in, click the “Create” button and your question will be posted to the forum. As people begin to respond, you can click the “My Questions” link on the dashboard and pick the corresponding question you would like to read to see answers from the community.
How do I answer a question?
Begin by clicking “View All Q n A” on the dashboard. This will have a list of recent questions and, if applicable, any answers that have been given. Simply click on the “read more…” link and you’ll be directed to the appropriate page. Once there, you can read through all the responses, then supply your own thoughts by filling in the box at the bottom and clicking the “Comment” button.
If you’ve asked a question and want to answer your own, you can do so by following these instructions or clicking the “My Questions” link and selecting the appropriate question. Once again, you’ll merely have to enter your ideas into the box at the bottom and click “Comment” to add them to the discussion.
How do I start a discussion group?
From the dashboard, click on “Start New Group” and you will be directed to the correct page. Name the group you’d like to begin (Investment Tips, e.g.) and add in three primary topics (investments, stocks, bonds, e.g.). After that, add a primary location to help people understand how your thoughts might be more relevant to them. Before clicking “submit” you’ll want to add a group description, as it will help new members understand the direction of the group before joining up.
After you’ve clicked “submit,” your group will be listed under the “My Groups” tab on the dashboard and in the left column of discussion pages. Once you click on the group’s name, you’ll be directed to the page where comments can be submitted. On the right side you’ll find a “Join this Group” button. Once you’ve subscribed to the group, you’ll be able to click the “Start Discussion” button, give your discussion a topic and create a description, which will serve as the first post.
How do I join a discussion group?

There are two separate ways to go about this, as you’ll see “Search Groups” and “Search Discussion” buttons on the dashboard. If you have a general idea of what you’re looking for or a place you’d like to see the information come from, click “Search Groups.” Here, you can enter a topic (retirement communities, e.g.) or location and look for groups based on that information. If you know of a specific discussion you’d like to join, then click the “Search Discussion” button and enter the name (Dating After 50, for example) then click the “Search Threads” link to be directed to it.
Once you’ve found a group you’d like to connect to, click the “Join this Group” button on the right side of the screen. From there you’ll be able to contribute by clicking on the individual thread, typing in your thoughts and clicking the “Comment” button.

Dream To Become Cash Rich And Financially Stable?

A Defined Benefit Retirement Plan is an ideal option to make you cash rich and financially stable even after you have retired from service. It is a unique form of retirement plan and is mostly sponsored by the employer. By being enrolled under the defined benefit retirement plan, you can enjoy additional funds and also a number of tax benefits.
In case of these types of plans, the benefits of the employees are based according to a calculation which takes in account various important factors and attributes such as the history of your salary and income, the tenure of our employment and other major things. In case of the plans, the management of the portfolio and the risks associated with investments are completely under the company’s control. In some states, these plans are also sometimes referred to as non-qualified benefit plans or qualified benefit plans.
There are plenty of defined benefit retirement plans that are available in the market. For getting the best deals, you need to choose the right one that is applicable for your investments. Even if you enroll into these plans and opt for early retirement, you can get good benefits. Another advantage of the plans is that you can enjoy tax benefits and exemptions. Only after you withdraw money from the account, you are liable to the tax rates. The benefits that you get are also not dependant on the returns of the assets.
There are certain other features of the defined benefit plans which make them preferred by the retirees. Even if you are covered under the defined plans, you can easily have other types of retirement accounts. You can own a business that can be of any size and need to file a form 5500 with a Schedule B on a yearly basis.
Compared to other Retirement Planning, the administration costs in these types of plans are more. However, considering the predictable amount of the benefits in a short period of time, the extra money that you pay is worth. If the minimum requirement of contribution is not fulfilled, you need to pay an excise tax. At times, loans are also permitted under the plan.

Find All The Information On 457 Retirement Plan

Internal Revenue Service (IRS) tax code has created a confusing set of retirement plans centered on numbers. The specific provisions and narrower focus of the 457(b) might give qualified individuals some attractive benefits, though. It is very similar to the better-known 401(k) and 403(b) in that it is a tax-deferred plan, with four principal differences: the tax code creates restrictions on the types of organizations which may participate, a smaller number of employees are designated eligible, actual control of the assets and the absence of early withdrawal penalties.
At first glance, a 457(b) plan appears to be a special variant of the 401(k). The contribution maximums, in particular, are exactly the same. Participating individuals can set aside $16,500 per year, with an additional $5,500 available for persons aged 50 and older as a “catch up” option. And, eligible workers can set funds aside to the allowable limits in both, if an employer makes them available. This means someone nearing retirement could contribute up to $44,000 per year – or, in some cases, up to 200% of the set 457(b) maximums for the last three years of the plan in addition to $22,000 in a 401(k).
What sets a 457(b) apart is the absence of an early withdrawal penalty. A 401(k) imposes a 10% fee when it’s drawn from before the age of 59.5 and the 457(b) does not, though the monies are subject to regular income tax. It’s even possible for a participant to use the plan as back up case of emergency, as long as legal requirements are met and other financial resources are exhausted. There’s also no minimum retirement age, as with the 401(k), but the federal government offsets this by keeping 457(b) participants from putting income into a Roth IRA when moving to another job.
Only state and local governments, as well as certain tax-exempt entities, can offer their employees the 457(b). The law makes provisions for the following groups to carry options for specific Retirement Plannning: charitable or religious organizations, private hospitals or foundations, labor unions, trade associations, fraternal orders, educational organizations and farmers cooperatives. Further, the IRS keeps these not-for-profit employers from matching contributions to 457(b) plans, which is much different than for-profit corporations with the 401(k) alternative.
On top of that, only certain employees can be given the choice of opening a 457(b). Though each organization determines the cut-off, beneficiaries are generally among the highest-compensated in a given organization. This gives individuals in their peak earning years the ability to defer federal and state income tax until later. For this reason, they are often referred to as “top hat plans,” especially when an executive is able to utilize the 457(f) option. (This is a less common case which allows the employer to put back as much it can pay and the employee is willing to allow.)
It is important to remember, though, that these assets remain in the control of the employer. In contrast to a 401(k), which is immediately released to the worker, the 457 Retirement Plan is considered the organization’s property until it is paid out. This means that, in the event the employer defaults on a loan or goes bankrupt, the funds are available to creditors seeking repayment and the employee loses the money altogether.

Get The Financial Stability With Retirement Pension Plans

The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.
In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the early retirement pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.
Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.
One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.
Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.
Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.
If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you.

The early retirement pension is one of the main components of the pension system in the US. Through the early pension system, the retirees are provided with financial stability which helps them to have constant source of funds. In most cases, the early retirement pension scheme is applied for workers whose age is between 18 and 67 years.
In simple terms, the main condition on which the early pension scheme is granted is that is the work capacity of the applicant is reduced by half of his or her overall capacity. In most cases, there are 3 sub divisions which are included in the Early Retirement Pension scheme. The classifications are based on work opportunities, age, the ability to work and other factors.
Usually, the income that you get from the early pension is based on the own income of the individual or the pensioner. In this case, the income of the spouse does not affect the retirement pension amount. In special cases, there may be addition of supplements to the pension scheme such as needs supplements, home care supplements, medicine and health supplements and so on.
One of the main advantages of the early retirement pension is that it encourages the older employees who are less productive to retire early from the job. On the other hand, it is also beneficial to the employees as the firm does not require to reduce the normal salary of the employees.
Some companies also provide health insurance benefits in the early retirement pension scheme. In most cases, those who are aged over 50 needs to have at least one health insurance plan. One of the main aspects of judging the early pension plan is that whether it is sufficient enough to cover your expenses. If the scheme is sufficient to take care of the expenses, you can accept the early pension offer.
Social Security is also another vital factor in determining the effectiveness of the early pension scheme. Try to see whether the early pension includes social security. One of the best ways to get better benefits is to delay your social security claims to enjoy longer returns.
If you have that sufficient financial stability and risk taking ability, early retirement pension can be a good option for you. Do your Retirement Planning now and have a better future.

AARP Position on Social Security Reform Uncertain

Confusion reigns after The Wall Street Journal reported a major policy shift from the American Association for Retired Persons (AARP) on Friday, June 17th.  The country’s most powerful lobbying group for older citizens, long opposed to cuts in Social Security benefits, is now willing to admit the time has come.  According to John Rother, AARP head of policy, “The ship was sailing.  I wanted to be at the wheel when that happens.”
Opposition amongst membership began almost immediately, prompting AARP CEO A. Barry Rand to issue a statement later in the day against “inaccurate media stories” and “misleading characterization.”  He went on to say AARP is “currently fighting some proposals in Washington to cut Social Security.”  Though the program has long been known to be running out of time – funding reserves are estimated to disappear in 2036 – Rand reiterated, “Social Security should not be used as piggy bank to solve the nation’s deficit.”
Despite the statement, the change is said to have been approved by the organization’s board of directors.  Evidence mounted as the group declined to join Strengthen Social Security, a group of 300-plus lobbying groups created to fight benefit cuts.  Rand made it clear “any changes would be phased in slowly, over time” before going on to mention opposition to certain key issues is just as strong now as it was when the group took a stand against them in 2005.
“They are completely at odds with their membership,” said Nancy Altman, Strengthen Social Security co-chair.  She noted AARP’s change would definitely carry weight in the Capitol, though perhaps at the expense of those it represents.
“I think they’re going to get burned,” said her fellow co-chair, Eric Kingson.
The AARP position shift is said to have limits, particularly with respect to ending the program for affluent beneficiaries.  In addition, it has proposed tax increases to make the program financially stable again, meaning it will have no part in being used for national debt reduction.  (Funding comes from outside the federal budget, so it doesn’t contribute to the deficit, either.)
The Obama administration is said to be looking to raise the retirement age and lower the index for annual cost of living benefit increases as part of a deal.  These cuts would be offset by higher taxes on the wealthy, a move to improve revenue and create better long-term stability for the program.
“Social Security should be strengthened to provide adequate benefits and…sufficiently financed to ensure solvency with a stable trust fund for the next 75 years,” Rand asserted in the statement.  Both Republican and Democratic representatives believe that minimum standard for solvency can be achieved by collecting more taxes and paying fewer benefits.
AARP has planned dozens of town-hall meetings across the country to explain the problem and possible answers, but selling the policy move to members will be difficult.  According to a February poll from The Wall Street Journal and NBC News, resistance to cuts of any kind is high: 84% of Americans 65 and older oppose them.  The group will be mindful of the larger ramifications, too.  It lost 300,000 members after endorsing President Obama’s health-care law, which reduced Medicare by $500 million.

Confusion reigns after The Wall Street Journal reported a major policy shift from the American Association for Retired Persons (AARP) on Friday, June 17th.  The country’s most powerful lobbying group for older citizens, long opposed to cuts in Social Security benefits, is now willing to admit the time has come.  According to John Rother, AARP head of policy, “The ship was sailing.  I wanted to be at the wheel when that happens.”
Opposition amongst membership began almost immediately, prompting AARP CEO A. Barry Rand to issue a statement later in the day against “inaccurate media stories” and “misleading characterization.”  He went on to say AARP is “currently fighting some proposals in Washington to cut Social Security.”  Though the program has long been known to be running out of time – funding reserves are estimated to disappear in 2036 – Rand reiterated, “Social Security should not be used as piggy bank to solve the nation’s deficit.”
Despite the statement, the change is said to have been approved by the organization’s board of directors.  Evidence mounted as the group declined to join Strengthen Social Security, a group of 300-plus lobbying groups created to fight benefit cuts.  Rand made it clear “any changes would be phased in slowly, over time” before going on to mention opposition to certain key issues is just as strong now as it was when the group took a stand against them in 2005.
“They are completely at odds with their membership,” said Nancy Altman, Strengthen Social Security co-chair.  She noted AARP’s change would definitely carry weight in the Capitol, though perhaps at the expense of those it represents.
“I think they’re going to get burned,” said her fellow co-chair, Eric Kingson.
The AARP position shift is said to have limits, particularly with respect to ending the program for affluent beneficiaries.  In addition, it has proposed tax increases to make the program financially stable again, meaning it will have no part in being used for national debt reduction.  (Funding comes from outside the federal budget, so it doesn’t contribute to the deficit, either.)
The Obama administration is said to be looking to raise the retirement age and lower the index for annual cost of living benefit increases as part of a deal.  These cuts would be offset by higher taxes on the wealthy, a move to improve revenue and create better long-term stability for the program.
“Social Security should be strengthened to provide adequate benefits and…sufficiently financed to ensure solvency with a stable trust fund for the next 75 years,” Rand asserted in the statement.  Both Republican and Democratic representatives believe that minimum standard for solvency can be achieved by collecting more taxes and paying fewer benefits.
AARP has planned dozens of town-hall meetings across the country to explain the problem and possible answers, but selling the policy move to members will be difficult.  According to a February poll from The Wall Street Journal and NBC News, resistance to cuts of any kind is high: 84% of Americans 65 and older oppose them.  The group will be mindful of the larger ramifications, too.  It lost 300,000 members after endorsing President Obama’s health-care law, which reduced Medicare by $500 million.
Having a proper Retirement Planning is a must.