Topics such as Social Security and its yearly Cost of Living Adjustment make some retirees – or those near retirement – shudder this time of year.
The Social Security trustees generally announce the Cost of Living Adjustment to recipients’ monthly checks in October, and the size of the adjustments can be “downright frightening,” says an article
on CNBC. The increase was zero in 2015 and 0.03 percent in 2016. (Since the referenced article was published, the 2017 increase amount has been announced: 2 percent.)
According to the article:
“Roughly 43 percent of older, unmarried recipients rely on that check for 90 percent of their monthly retirement income, according to the Social Security Administration. The average monthly check is $1,369, by the way.”
Additionally, a recent Nationwide Retirement Institute poll on consumer attitudes toward Social Security point to low confidence in the program for the near future. And many people don’t fully understand how the program works, the article says.
How can you prepare for such a scenario where Social Security alone might not be enough to cover expenses? There are retirement savings products, such as IRAs, that allow you to set aside income for retirement.
Learn more by speaking to a Senior Account Executive. Schedule a consultation today