Guaranteed Income- Step 1 to a Successful Retirement
At RetirementAdvisers.net, we’re offering you a complimentary brochure on the “10 steps to a Successful Retirement.” In a short video series, I’ll read from each step in the strategy.
In this first video, we’ll talk about step one: guaranteed income. You can also read the blog post version of Step 1 below the video.
How much guaranteed income do you have? The problem here is, it’s always best to start your planning with those things you are certain about. There are some forms of income that are fixed and guaranteed. You know you’ll receive the income and you know generally what the amount will be. This income does not fluctuate based on things like stock market volatility or interest rate changes.
Knowing your base of guaranteed income will give you an idea of whether you have enough money to cover your most urgent expenses. If you’re fortunate enough to have a significant amount of guaranteed income, you may have a good foundation from which to build. If not, you may need to do some extra planning.
The three most common sources of guaranteed income are pensions, Social Security and fixed annuities. Pension benefits are partially protected by the Pension Benefit Guaranty Corp., a federal government agency. Guarantees provided by annuities are the responsibility of the issuing insurance carrier.
Social Security faces some financial challenges, but it’s likely to still be a reliable source of income for those who are approaching retirement. The Social Security retirement trust fund is projected to run out in 2033, but even after that point, it still should offer benefits. Younger generations may face cuts, but your benefits should still be available.
The solution to this problem? Organize all of your statements from your sources of guaranteed income. Those could include your pension(s) at your current or past employers. It should also include your Social Security statements and statements for any annuities you may own. Determine the total estimated guaranteed income from those sources. If that information isn’t easy to find, contact an insurance agent. We can review your statements and help you collect this important information.
Get a complimentary “10 Steps to a Successful Retirement” guide from Retirement Advisers:
https://www.retirementadvisers.net/resources
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