National Social Security Authority of Zimbabwe (“NSSA”)’s Post

For most people, the optimal age to claim Social Security is 70. A study found the majority of retirees end up with more lifetime income if they delayed their benefits to age 70. This does not mean that everyone is better off claiming at 70, though. In fact, there are three situations in which making a different choice would be a better financial move. If you're claiming spousal benefits When you are claiming based on your spouse's work record, you absolutely do not want to wait until 70 . The best age is your full retirement age (FRA). At FRA, receive the maximum spousal benefit, 50% of your higher-earning spouse's. There is no delayed retirement credits for spousal benefits. If you're in poor health with no spouse Claiming benefits at 70 a bad idea if you're in poor health and you won't have a spouse relying on survivor benefits. That's because you're unlikely to break even for your delayed claim in this situation. If you're at risk of running out of savings If you are not working and are relying on your savings you'll want to make sure you aren't draining your account dry. You need to maintain a safe withdrawal rate 4% or less to make your savings last. #socialsecurity

This article tells us a story about Patricia. Patricia was an elementary school teacher in Atascadero, California and paid into a public pension system for 28 years. She also worked part-time as a secretary and paid Social Security taxes through that job. She retired with a disability in 2003, and while her Social Security statement showed that she was due $247/mo in Social Security disability benefits, the Windfall Provision Elimination (WEP) reduced the payments to $108/mo. Her teacher’s pension was $1,930/mo.   Furthermore, her late husband, passed after a successful career as a college professor. He was collecting $1,406/mo in Social Security benefits and $4,000/mo in private pension benefits before his passing. Theoretically, Patricia should qualify for the full $1,406/mo Social Security survivor’s benefits. However, due to something called the Government Pension Offset (GPO), Patricia will quickly learn she does not qualify for any of her late husband’s Social Security benefits.   When reading your Social Security statement, and you’re a government employee, please note that your benefit number may be significantly overstated due to the WEP or GPO. I can’t stress enough the importance of reviewing your benefit options before retirement to avoid an unexpected surprise from a reduction in retirement benefits.     See below to understand how WEPs and GPOs may impact your retirement income, as well as strategies to mitigate these impacts. #stepforward #SocialSecurity #pension #WEP #GPO #retirementplanning

Optimizing your Social Security claiming strategy can significantly impact the probability of success of your financial planning and retirement. Many people know they are eligible for Social Security benefits, but did you know there is also a provision to provide for spouses, regardless of whether they have contributed to the program? You might also be eligible to claim spousal benefits if you are widowed and, in some cases, even if you are divorced.

Social Security 101: When do I become eligible to receive spousal benefits from Social Security? There are two main requirements for married couples: Your spouse must file for and start receiving his or her Social Security retirement benefits, which means that they would need to have met all of the qualifications to qualify for Social Security (listen to The Year You Retire ep 4 for full details). Note that this is a change from years past, when your spouse did not have to start receiving their benefits for you to file for spousal benefits. You, as the spouse receiving the spousal benefits, must meet the age requirement (62 years of age in the case of a currently-married couple). There is an exemption for spouses caring for a disabled child or a child under 16, but in most situations, 62 is the minimum. And how much is the spousal benefit? Typically it is 50% of your spouse's full benefit amount, assuming that you start receiving your spousal benefits at your full retirement age (66 or 67, depending on when you were born).

GIPF board approves 5% increase in monthly pension and disability benefits: Business Reporter THE Government Institutions Pension Fund (GIPF) has announced a 5% increase in income for active annuitants’ pensions (pensioners, spousal, and child beneficiaries) effective April 1, 2024, and a 5% income increase for members on disability effective April 1, 2024. Pensions and disability income that have been in place for a year or more are eligible for a full 5% increase, and those that are under a year are eligible for a pro-rata increase based on the number of months the pension has been in effect. Edwin Tjiramba, General Manager of Marketing and Stakeholder Engagement, said that the Board of Trustees took this decision after thorough actuarial due diligence and considering various factors such as the inflation rate, cost of living, and reasonable benefit expectations of its active annuitants. They also considered the affordability on the part of the Fund, the average annual return over the last five years, as well as the current and future liabilities and assets of the Fund to ensure that the Fund’s assets can adequately cover its liabilities. PICTURED: GIPF CEO and Principal Officer, Martin Inkumbi. Photo: Contributed --- “Given the fact that returns on investments are volatile from year to year, the Fund has adopted a 3-year averaging method, with the returns of each December year-end serving as a reference point,” Tjiramba said. He further stressed that by awarding annual pension increments, the Fund aims to create a delicate balance by considering the volatile investment environment, global geopolitical circumstances, and the need to manage expectations regarding pension increases while ensuring that active annuitants (which stood at 51,484 as of February 19, 2024) can live reasonably within inflation parameters. “A pension increase serves to cushion pensioners from unexpected changes in their purchasing power and hence ensures the incessant ability to increase members’ benefits annually. The Fund aims to match the Namibian Consumer Price Index (NCPI) to ensure that pensioners retain their purchasing power over time, subject to affordability,” said Martin Inkumbi, GIPF CEO and Principal Officer. Inkumbi, touching on the disability grant increase, said that this was due to a thorough actuarial due diligence process that informed the Board of Trustees. They also took into consideration that this group of members last received a disability income increment seven years ago. “The Fund is committed to guarding and growing all members’ financial security, hence the increase in the disability income which serves to cushion disabled members from unexpected changes in their purchasing power,” concluded Inkumbi. The post GIPF board approves 5% increase in monthly pension and disability benefits appeared first on Informanté.

Social Security Benefits for Spouses. Spousal and survivor benefits can provide additional income in retirement…but the rules can be confusing. https://lnkd.in/eDmdyU-a

While the findings in this phase of AMP's Intergenerational Wealth Research are known to many of us in the industry, what is surprising to me is that so far this is still not enough to change what we do in retirement to generate a better retirement outcome for Australians to create a better tomorrow. For those advisers (including many of the ones I've spoken to over the years) who have yet to take a look at different (& better) ways to serve retiree clients, you won't yet realise you can keep running the same portfolio for your clients (& even the same #ManagedAccount), while giving them confidence they can take much higher income without ever running out, and significantly improve their social security outcomes. It won't suit everyone, but will suit many. Check it out on North. #RetirementIncome #ManagedAccount #Retirement #IntergenerationalWealth #AgedCare

Today we release the next phase of our Intergenerational Wealth research with a focus on Aged care and how retirees are feeling about this life stage.   Key findings include: ➡ 4 in 5 Australians aged 65 and over aren't feeling prepared for the transition to aged care, while 7 in 10 worry about the cost of care. ➡ The majority of older Australians would prefer to avoid aged care and stay in the family home, with 3 in 5 saying they would prefer to age in the family home and half preferring to receive care in the home. ➡ 3 in 4 expect aged care to diminish their wealth and children’s inheritance.   These insights highlight the financial worry and lack of understanding many older Australians have about aged care, including its cost, how they will fund it, and how it interacts with the pension system.    The Government’s Aged Care reforms are an important step to help support the growing numbers of older Australians choosing to retain their independence but as a financial services industry, we need to do more.   AMP is continuing to work with government and regulators to help alleviate these worries. More affordable and accessible financial advice is central to building financial confidence, and in helping demystify the nuances and complexities of our retirement system, including how the aged care system interacts with the pension and family home.   Read all the key findings, commentary and our tips to help manage the transition to aged care here: https://lnkd.in/gZNbXh5c   Melinda Howes

We’re just beginning to navigate this with aging parents. Early planning with professional financial advisers is key to simplifying the overwhelming and complex.

Around 3 million Australians are unpaid caregivers. Most face a super risk. The need to provide support can arise at any time as a result of people needing to help others with a disability, a mental health condition, a chronic or terminal illness, or who are elderly. In many ways, caregivers are unsung heroes. Their work is invaluable, but they are typically forced to forego paid employment and also miss out on precious compulsory superannuation payments that would otherwise have been paid by an employer. The financial cost of caregiving can be very costly over time and can have a significant impact on retirement savings balances. There are a number of ways individuals can potentially lessen the long-term impact on their superannuation balance from having to stop work. Below is an estimate of the potential impacts on individual superannuation retirement balances for those who need to provide unpaid caregiving. For a 25-year-old taking one year of carers’ leave (based on a median wage of $43,200), the estimate of their superannuation balance would potentially be $12,900 less at age 67 than someone of the same age who takes no carers’ leave during their career. Using the same measures for a 35-year-old (based on them earning a median wage of $62,500), the estimate of their retirement balance would be $14,300 lower; and likewise, for a 45-year-old (based on a $65,600 median wage), we’ve estimated their retirement balance would be $11,500 lower than someone who didn’t take any carers’ leave. Of course, the numbers would likely be substantially higher for people who need to take longer periods out of the workforce to provide caregiving. Additional calculations, using the same assumptions, based on individuals earning 50% less over a five-year period so they can be a part-time caregiver are as follows. This would lead to a $26,100 retirement savings gap for a 25-year-old compared with someone the same age working full-time; a gap of $29,900 for a 35-year-old; and a gap of $24,300 for a 45-year-old. There are a number of ways individuals can potentially lessen the long-term impact on their superannuation balance from having to stop work to provide caregiving on a temporary basis. 1. When full-time work is resumed, try to make personal concessional contributions (taxed at 15%) in addition to the compulsory SG contributions made by an employer. 2. Individuals may also be eligible for the Federal Government’s automatic $500 annual superannuation co-contribution payment. 3. Making concessional superannuation catch-up contributions down the track is another option. 4. Individuals can also make after-tax contributions into their superannuation in any financial year, perhaps using money from an inheritance or an asset sale. If you are a caregiver and unsure about your options or need some additional advice on how to protect and maximise your retirement savings over time, talk to your Financial Adviser today.