
Retirees talk about the mistakes that led them back to the workplace.
Social security is adjusted, yearly, due to cost of living, yet the increase is dependent on the state of the economy. The better the economy the less of a COLA increase is received, according to CNET.
“I never should have left that job, and I should have stayed working,” she said.
An unnamed Atlanta resident is another retiree that regrets the early cashout on social security. Claiming her benefits 5 years early she only receives $936 monthly. The payment is not enough to sustain her basic cost of living or the mounting medical bills. The Atlantan did not think through the health issues older age would present. As a result, she, like Rudd, went back into the workforce and does not foresee being able to retire truly.
The IRS lists 4 stages of setting up a retirement plan. The process can be executed with little, but the more you put in — barring any extreme changes in the market — the more you get out.
Stage 1
Choose a plan that fits your needs. Consider how much money is needed to maintain your current socioeconomic position. Think about if downsizing in retirement is an option. If it is an option, have a plan prepared to transition quickly and at minimal cost. Also consider how much time you have until retirement. If your retirement planning has begun late, you may not have as many options as a younger investor.
Stage 2
Solidify your plan. The first step to solidifying a plan is writing it down. Arranging a trust will help protect some of your assets in retirement. Create a medical savings account to help ease the cost of care in older age. Decide on a system to keep track of your assets and update your trust and retirement portfolio.
Stage 3
Stage 4
The goal is to rest with little stress. Business Insiders interviewees stated more than just early social security as their retirement downfall. One retiree who is also back in the workforce overspent when she retired with abundant resources. Another, took a hit in the stock market and became fearful of investing.
Researching the different retirement options. Taking advantage of employer matches and contributions and sticking to a plan can help.
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Source: Black Enterprise