Based in New Hampshire, Edward (Ed) Marsi engages as a senior financial consultant who provides a host of coordinated financial solutions. A focus of Edward Marsi and his team is in generating comprehensive financial plans that enable the successful navigation of the retirement years.
As late as the 1980s, half of American corporate employees had savings, Social Security, and employer-provided defined-benefit pension plans to rely on for ensuring guaranteed income streams. With defined benefit pension plans now down to just 10 percent of employees and people living longer than ever, the importance of strategically planning for retirement cannot be overstated.
One way of ensuring significant Social Security payments past retirement is to work full time for 35 years or more. This is due to the way in which the Social Security Administration calculates benefits paid out, using the highest 35 years’ adjusted wages as a basis. Having several years with little or no income in the mix can significantly impact what is received after retirement.
Another recommended strategy is waiting until full retirement age (FRA), which is currently 67 years old, before opting to receive payouts. Those who retire up to three years before FRA will have their benefits reduced by 5/9 of one percent for each month benefits are taken before FRA. Those who retire more than three years before FRA confront a doubling of the percentage taken out each month. Conversely, the payout increases by 2/3 of 1 percent for each month of delayed benefit payout until age 70. These small percentages become significant when considering that the average worker, who receives approximately $1,400 each month in Social Security, would receive less than $1,000 if retiring at 62 and nearly $1,700 if retiring at 70.
