Retirement Planning

Social Security is an insurance program. Workers pay into the program, typically through payroll withholding where they work. They can earn up to four credits each year. To qualify for Social Security retirement benefits, workers must be at least 62 and have paid into the system for ten years or more. Workers who wait to collect Social Security, up to age 70, will receive higher monthly benefits.

An employer-sponsored plan is a type of benefit plan offered to employees at no or relatively low cost. These plans, such as a 401(k) or HSA, cover various services, including retirement savings and healthcare. Employees who enroll in such programs capitalize on the benefit of receiving discounted services.

There is a gap between the retirement income they can expect from Social Security and employer-provided plans and their retirement income objectives for many people. Personal retirement savings, fixed annuities, IRAs, and Roth Accounts can also be considered, in certain situations, to bridge this gap.