What is the Average Amount of Social Security?

How much will your Social Security benefits be, compared to what the average recipient receives?  Every year, the government mails you an estimate of the amount you can expect to receive in Social Security benefits when you retire.  When you look at those statements, how do you know if your benefits are about average, higher than average, or less than what the typical recipient will receive?  This article will help you determine if your retirement is on track compared to other retirees. 

How Much Social Security Does the Average Retiree Receive?

The numbers below are based on January, 2017 figures. If you are reading this after 2017, you can expect that the benefits will have increased slightly.  However, because the cost-of-living increases are typically modest, these numbers are unlikely to change dramatically.

According to SSA.gov, the numbers below are for the average retiree. 

Average Social Security benefits:     $1,360 a month / $16,320 a year
Average Social Security for couple:  $2,260 a month / $27,120 a year

Although this is not a large amount of money, according to current government estimates, it does mean the average individual or couple will receive enough income from their Social Security benefits to not fall below the poverty line.

While your Social Security income may not officially leave you in poverty, the amount is often substantially below what the average working individual or couple received in earned income, especially during the decade or two before they retired.  Consequently, the typical retiree often sees a significant drop in income, if their Social Security benefits are their only source of income during retirement.

How Much Will Your Benefits Increase Each Year?

Social Security benefits only increase at the rate of inflation, because retirees periodically receive a cost-of-living increase.  However, over the past few years, the cost-of-living increases have been either mostly or entirely eaten up by increases in Medicare premiums.  In other words, Social Security recipients frequently do not receive any increase in their annual benefits, even when there is inflation.

To make matters worse, the government is considering changing the way it estimates the rate of inflation for Social Security beneficiaries.  Currently, they use the CPI-W, which is the abbreviation for the Consumer Price Index for Workers.  This is the increase in the cost of consumer goods and services which the average worker has experienced over the period of a year.  However, the government wants to change to using a Chained CPI. The Chained CPI is a less generous Consumer Price Index which assumes that, as prices go up, a retiree will substitute their purchases for less expensive items. Therefore, cost-of-living increases can be smaller.  The Chained CPI does not take into consideration the fact that many retirees are already purchasing the least expensive items they possibly can.

In addition, neither Consumer Price Index considers the fact that many retirees actually spend more money on certain items after they retire.  For example, they may spend more on medical care or to hire people to help them do yard work or clean their homes.

What Happens to a Couple's Social Security if one Spouse Dies?

Another problem is that a married couple will see their household income drop by approximately 33 to 40 percent when one spouse dies.  This is because the surviving spouse will only be paid the higher of his or her own benefit or that of their deceased spouse ... but not both.  Since their house payments, property taxes, utilities and similar expenses will not decrease when their spouse dies, the surviving spouse may suddenly find themselves in worse financial shape.

What is the Future for Social Security?

Unless Congress takes steps soon to increase the size of the Social Security Trust Fund, it is expected to run out of money within 17 years ... or by 2034.

This does not mean that Social Security will cease to exist.  Current workers will continue to pay enough into the system to allow the Social Security Administration to keep paying between 74 percent and 79 percent of the promised benefits.  However, it does mean that retirees could see a 21 to 26 percent decrease in their benefits.

The sooner Congress resolves this problem, the easier it will be for them to begin refilling the Social Security Trust Fund.

What Can You Do to Protect Yourself?

If you have not yet retired, you may want to postpone retiring as long as possible.  If you wait until age 70 to begin collecting your benefits, you will maximize your benefits.  In addition, waiting to retire will give you a few more years to increase the amount of money in your personal retirement accounts, thus making it possible for you to have more resources for supplementing your income after retirement.

If you are over the age of 50, the amount you can put in a tax deferred retirement account jumps from $5,500 to $6,500.  If you have a company 401(k), the amount you can contribute at age 50 and over jumps from $18,000 to $24,000 a year.  Of course, you can also save or invest additional amounts of money, if you can afford to, although those amounts would not be tax deferred, at this time.  However, the allowable amounts for tax deferrals could go up in coming years.

Once you are retired, plan to use no more than 3 to 4 percent of your total savings each year, which would allow you to have extra income for 25 to 33 years, or longer.

Looking for more information on financial planning, where to retire, Social Security, Medicare, common medical problems or changing family relationships?  Use the tabs or pull-down menu at the top of the page to find links to hundreds of additional helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com

Source:  fool.com/retirement/2017/01/20/what-will-the-average-retiree-get-from-social-secu.aspx

Tips for a Sharper Brain and Better Memory

While most of us will not completely lose our memory to Alzheimer's Disease or another form of dementia, there may be times when nearly all of us feel as though our thinking is a bit fuzzy or we cannot remember as well as we used to.  At the same time, we are constantly amazed by some of our peers who seem to stay "sharp as a tack."  Is there anything the rest of us can do to have a sharper brain and clear memory?  According to a number of leading experts, the answer is "Yes."

The Connection Between Your Heart and Brain

Our brain is dependent on the nutrients which our heart sends its way.  According to Dr. Hannah Gardener in the Department of Neurology at the University of Miami, the stronger our heart, the less cognitive decline we will experience.  She suggests that everyone strives to meet as many of the goals on this list as possible:

Stop Smoking
Have a BMI of under 25
Be physically active at least 150 minutes a week
Have a total cholesterol under 200 mg/dL
Have a healthy blood pressure under 120/80 mmHg
Have a healthy blood sugar under 100 mg/dL
Eat a diet rich in fruits, veggies and whole gains; low in sodium and sweets

Even if you cannot achieve all of the above goals perfectly, the closer you come, the better off your brain will be.

Follow the MIND Diet

This blog has discussed the MIND diet before.  It is short for Mediterranean-DASH Intervention for Neurodegenerative Delay.  MIND is much easier to remember.  Below is a brief summary of the diet, although anyone who wants to follow it would be smart to get a more detailed book on the subject.

DO EAT

6 servings of salad a week
7 servings of other vegetables a week
2 servings of berries a week
5 servings of nuts a week
3 servings of whole grains a day
1 serving of fish (not fried) every week
3 servings of beans a week
2 servings of poultry a week
Use extra-virgin olive oil instead of butter
Optional: 1 glass of wine a day

LIMIT THESE FOODS

Butter - no more than one tablespoon a day
Cheese - no more than one serving a week
Red meat - no more than four servings a week
Fried foods - less than one serving a week
Sweets and pastries - no more than five servings a week

Exercise Your Brain

Research has shown that people who regularly give their bodies and brains a work-out are able to postpone the signs of cognitive decline.  Here are some of the things everyone should do:

Get exercise - walk, cycle, swim and lift light weights - 150 minutes a week
Play games - chess, board games, puzzles, etc.
Meditate - spend your "down time" meditating a few minutes every day
Explore Your Artistic Side - sing, act, draw, paint or play an instrument
Read - in particular, read books as well as newspapers or magazines

Other Health and Lifestyle Changes

In addition to the above recommendations, research has shown a link between socializing with others and having a higher level of cognition.  On the other hand, people who are lonely tend to have poorer brain health.  Stay in touch with family and friends.  Join a club.  If you are religious, get involved in a place of worship.  Sign up to take classes.  The more time you spend interacting with other people and learning new things, the more likely you will be able to postpone dementia.

In addition, see your doctor regularly and treat any other problems you may have, including emotional ones.  People who have depression in middle age are at a higher risk for cognitive decline in later life.  People who have sleep problems also see more rapid mental decline as they age.  Talk to your doctor about any health issues you are experiencing and get them treated.  

Medications and Dementia

If you believe that you or a loved one is experiencing signs of dementia, see your doctor as soon as possible.  Researchers are continually discovering new medications which seem to slow down the progression of Alzheimer's Disease and other forms of dementia.  The sooner these drugs are started, the more successful they are.

In addition, it is possible your brain fogginess or symptoms of dementia could actually be a side effect of a medication you are currently taking.  If you suspect this could be your situation, talk to your doctor about changes which could be made to your prescriptions to minimize this problem.


If you are interested in learning more about how to maintain your health as you age, financial planning, Medicare, Social Security, where to retire and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional helpful articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com


Photo credit:  morguefile.com

Early Diagnosis of Dementia is Possible

Many people mistakenly believe that every time they misplace their car keys or forget an appointment, it is an early sign of dementia ... including Alzheimer's Disease.  The truth is that everyone sometimes forgets something.  However, that does not mean that early diagnosis of dementia is not possible.  Researchers have discovered that changes in behavior or personality could be a better way to predict dementia than occasional forgetfulness.

Mild Behavioral Impairment Could Indicate Brain Changes

Dr. Zahinoor Ismail of the University of Calgary and his team of researchers have compiled a checklist of symptoms which could be a red flag for doctors and families who are watching for signs of mental decline.  In putting together the checklist, they discovered that the brain changes that eventually lead to dementia can affect other parts of the brain years earlier.  In fact, people can develop signs of behavior impairment as much as a decade or two before they begin to show memory loss.

Symptoms of Behavioral Changes

Among the behavior changes which could be symptoms of future dementia are:

Has the patient lost interest in their favorite activities?
Are they getting unusually anxious, aggressive or suspicious?
Are they making crude or inappropriate comments in public?
Have they developed signs of depression?
Are they experiencing "sundowning" ... agitation or memory problems which are worse late in the day?
Have they become apathetic?
Do they get anxious about activities which have always been routine?
Are they losing their impulse control?
Have they started flaunting social norms?
Are they losing their appetite or showing less interest in food?

Dr Ismail emphasizes that these changes should be new problems that last more than six months.  In addition, they should not be problems that can be explained in other ways, such as by a clear mental health diagnosis or the recent death of a loved one. These need to be new behaviors.

Early Treatment Can Delay Alzheimer's Disease and Other Types of Dementia

If you notice that you or someone you love has developed recent personality or behavioral changes, it could be worth it to discuss the problem with your family doctor.  There are treatments which have been successful in slowing the progression of dementia.  It is also possible that early treatment could be even more successful if it is started as soon as mild behavioral impairment is noticed.

Medications are available to help people control their depression, anxiety and irritability, which could make life easier for both the patients and their family members.

Other Ways to Slow Down Dementia

Many researchers believe working crossword puzzles and playing a variety of brain games could slow down the development of dementia.  While these games may help, it is possible that social activities could be even more important.  Researchers from the University of Wisconsin reported their findings that "complex jobs that require working with people may help the brain build resilience against dementia, what's called 'cognitive reserve.'" 

In addition to being engaged in complex activities with other people, researchers from the University of South Florida discovered that reaction-time training could significantly decrease your risk of being diagnosed with dementia.  In the study, led by Dr. Jerri Edwards, 14 percent of people in a control group that received no intervention were diagnosed with dementia a decade later.  Those who had received just ten hours of reaction-time training over a five-week period lowered their risk of a dementia diagnosis to 12 percent; those who continued to get extra booster training lowered their rate of diagnosis to 8 percent.  The booster training consisted of four extra sessions one year after the original training and four more two years later.  The scientists measured the cognitive and functional changes at the beginning of the study, as well as at the one, two, three, five and ten year marks.  They found the group that did the speed training had 33 percent less risk of dementia when compared to the control group.  Even better, those that did at least 11 speed-training sessions were at 48 percent less risk for developing dementia over the ten years of the study.  The speed training consisted of a computer program in which the participants were asked to identify objects on a screen quickly.  The program got harder with each correct answer.

Other researchers have discovered that getting exercise, learning new skills, being involved in a religious organization, eating the Mediterranean diet, and socializing are all good ways to reduce dementia risk.


If you are interested in learning more about lowering your risk of dementia or developing other health problems, finding good places to retire, financial planning, Social Security, Medicare and more, use the tabs or pull down menu at the top of the page to find links to hundreds of additional articles.

Sources:

http://abcnews.go.com/Health/wireStory/behavior-offer-clues-dementia-brewing-40838965

http://www.nbcnews.com/health/mental-health/brain-games-might-cut-alzheimer-s-risk-n615856

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  morguefile.com