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Turning 60

June 09, 2020
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You turn 60, and An Odd quirk of Social Security may adversely impact your Retirement.

Most people do not pay attention to Social Security payment indexing until after they retire and file for benefits. Only once before, decades ago, has Social Security benefit indexing gone negative. And this year’s economic wage decline could impact you for simply turning 60 in the wrong year.

 

What is payment indexing and how does that happen? 

Social Security legislation automatically indexes wages every 5 years, then flows through to tables reflecting age and your specific income history. 

Ok, but I didn’t get laid off does that still affect me?

Answer, we don’t know for sure because the year isn’t over. With 2-3 months (or more), of 30 million people out of work, it just might. I realize you may not have been laid off, but the index is based upon income averages, then applies the average to your history.

What we know is, there are ways to mitigate possible damage by taking action now and making multiple plans for your eventual retirement.  Give us a call, and we can give you more detail, and if interested work out planning options and review your retirement accounts.