Frequently Asked Questions About Retirement

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Although most, if not all of us, know what retirement is and probably a thing or two about saving for it, we also know that there are a lot of questions about it that go unanswered simply because people are afraid to ask. But by not asking questions, we're ultimately hurting ourselves and making the process of retiring much more difficult.

As your trusted financial planner, today, we're here to provide some of the answers to frequently asked questions about retirement so that you can better prepare.

Q: How much money needs to be saved for retirement?
A: Since the answer to this question will differ from person to person, unfortunately we cannot provide a concrete amount. However, what we can say is that it all depends on the long-term goals you have for yourself as well as how much you will need to cover your monthly expenses - this can all be figured out by sitting down with a financial planner such as ourselves.

Q: What type of retirement savings plan should be chosen?
A: There are several great savings plan options that can be used to help you prepare for retirement, and similar to the previous question, the answer may depend on your personal and financial goals. If your employer offers a 401(k) plan, you should absolutely contribute - especially if they offer an employer match. Aside from employer sponsored plans though, don't forget that there are also IRA accounts that you can set up for yourself. Again, the best method for you can be determined by sitting down with an experienced financial and retirement planner.

Q: How much can be contributed to a 401(k) plan per year?
A: In 2016, employees who utilize a 401(k) plan can contribute up to $18,000.00. For those employees who are 50 years of age or older and making catch-up contributions, these are limited to a total of $6,000.00. As these may change over time, though, make sure that you reference the IRS for updates or connect with your financial planner.

Q: What is the full retirement age?
A: Full retirement age is currently 66, with 67 being the age when retirees can receive their full benefits.

Q: At what age can Social Security benefits be received?
A: You are eligible to start getting Social Security retirement benefits at age 62, however, doing so will reduce your benefits by as much as 30 percent below what you would get if you waited until full retirement age, according to the Social Security website. You can claim your full retirement benefits if you wait until full retirement age, or you can claim an increased benefit if you wait until you turn 70.

It doesn't matter if you're a millennial just starting out in the workforce or an experienced employee - everyone needs to know about retirement so that your final years of work aren't spent stressing over how things are about to change.

Here at American Investment Planners LLC, our advisors have an extensive background in retirement planning and know the answers to any questions you may have, so let us help! To make an appointment with one of our retirement planners, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.