Social Security retirement benefits can begin as early as age 62, or can be delayed. Once benefits start, however, the payment is locked in for as long as the recipient lives (except for cost-of-living adjustments). Starting Social Security before the full-retirement age, currently age 65, causes benefit amounts to be permanently reduced. The closer one is to age 65 when benefits start, the larger the fraction of the full benefit received.
It's never too early to think about planning for retirement, but time can and does run out. Moreover, as our average life spans increase, Americans should be prepared to put aside more money to accommodate their longer retirements. As a rule, advisers are recommending clients plan to replace 70 to 80 percent of their incomes.
Once they know what to expect from Social Security and their employers, doing the math is easy. The hard part is getting started on a retirement plan and having the self-discipline to see it through, but getting started begins with that first step – planning.
Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.