How Do Social Security and your 401(k) Fit Into Your Retirement Plan?
In this Yahoo! Finance article, author Rebecca Lake discusses how Social Security and your employer 401(k) plan can work together to help you achieve financial comfort during retirement. Most large employers offer a 401(k) tax-deferred savings program, and many employers match employee contributions at least to some degree. Those matching employer 401(k) contributions are essentially free money which, combined with investment growth, can lead you to a sizable nest egg when you’re ready to retire. You’re in control of how much you contribute to your 401(k) and, thus, how big your nest egg will be when it’s time to retire. Conversely, you can’t control how much you contribute to Social Security. Rather, you contribute a set percentage of your monthly earnings to the program, in return for which you will enjoy a lifetime monthly benefit when you decide to retire. You can, however, exercise some degree of control over the size of your SS benefit by waiting longer to claim. So, when retirement is near, how do you best use each of these two separate programs to achieve a comfortable retirement? Assistance with answering that question can be found in this article.
Also, if you’re unsure about your individual situation under Social Security or have questions about your personal benefit entitlements, note that the AMAC Foundation provides an independent free-to-the-public Social Security Advisory service to help Americans navigate the complexities of this program. Learn more about it here…
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