Meeting your retirement goals requires a good amount of planning, and like most things in life, the sooner we get started, the better. Whenever you reach a new decade, it’s definitely smart to hit a new checkpoint for your Social Security planning too!
Get on the Right Track for Social Security
There are different factors that will come into play for your Social Security benefits over the years. This quick overview can help you review your planning process as you age—and even help you guide the ones you love!
Starting up in your 20s:
Most of us are navigating the early stages of our career in our 20s, which means there can be a lot of flux in our earnings. This can make it challenging to stay motivated and dedicate savings to a retirement plan. But today, young people need to be more proactive than ever.
Building retirement savings early on can have major payoffs, especially because there’s no guarantee that Social Security in its current form will exist down the road. Contributing to a 401(k) plan offered by your employer is just one example of how people in their 20s can get ahead of the game with their retirement planning.
Plan for reviews in your 30s:
As our professional life progresses, we can use our 30s to increase our retirement contributions at a reasonable pace. During this decade, it’s also wise to set up an account on the Social Security Administration (SSA) website. Then you can continue to check the accuracy of your Social Security wage history.
Continue to earn more in your 40s:
Ideally we see a nice jump in earnings during our 40s. This decade can be critical for calculating your Social Security retirement payments. Because the SSA determines these values based on the average of the 35 highest-earning years of your career, it’s worth confirming that your income now will continue to replace the lower-earning years from when you were younger.
Targeting a retirement date in your 50s:
In your 50s, it’s time to really get serious about your retirement goals. Picking a specific calendar date for the official start of retirement might sound like a bold move, but it’s always nice to have a clear target!
During this decade, it’s also important to have regular, honest check-ins with yourself about what type of lifestyle you’ll want to enjoy in your retirement. Whether you’re aiming for an early retirement or not, you’ll need to continue reviewing your income reports to the SSA. Talk with a financial advisor whenever you need to, and make sure your forecasted future can become a reality.
Decisions in your 60s:
This is where we want the hard work to pay off! Will you wait until the current full age of retirement at age 67? Or will you begin taking your Social Security benefits at age 62? Your benefits will increase the longer you wait, but you may have multiple reasons why you want to make use of the money sooner. Planning now can help make that decision process easier when the time comes.
Looking for Tax Prep Along the Way?
NSO & Company helps address the tax planning and tax return preparation needs for clients across the country, with a focus on the greater Indianapolis area. We serve individuals and families, and also have a unique niche for small business owners.
Whether you’ve been talking with your financial advisor for years to gear up for your Social Security benefits or just starting your retirement planning, we’re here to help maximize your deductions and keep your tax liability to a minimum. Contact us for a consultation so we can make sure you’re on the right track!
