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Retirement & Social Security– What does Gen Z think?
For those born 1997 to 2012 and now aged 12-27, retirement is so far away. But Generation Z, as they are called, can count on Social Security to offer something, even with its financial woes. Still, it replaces a mere 40% of preretirement income, which is not enough to live on. But while Gen Z as a whole is actually off to a good start with saving, the group may be underestimating what is needed in a full retirement. Many want to quit working early, but that coupled with a longer life expectancy means money must last longer too. Full piece here by Kailey Hagen.
Is it true that we cannot receive both retirement and social security payments together!!???
Uneda:
Thanks for the question. Assuming you’re talking about private retirement plans (company pensions, IRA or 401k withdrawals, etc.) there is nothing to prohibit someone from collecting from these plans while drawing Social Security benefits. Be advised, though, that payouts from retirement plans are generally considered to be ordinary income for federal income tax purposes and, as such, would add to the adjusted gross income amount used to calculate income tax liability. This would have an affect on the net amount of your Social Security benefit, since an adjusted gross income level over the thresholds currently in effect (see IRS publication https://www.irs.gov/pub/irs-pdf/n703.pdf) would cause up to 85% of your Social Security benefit to be subject to federal income tax.
Note that AMAC, via its Social Security Guarantee proposed legislative changes to address Social Security’s long-term solvency problem, is advocating that taxation of Social Security benefits be eliminated from the IRS tax code, or that at least the thresholds be increased. Learn more about AMAC’s position on Social Security reform at amac.us/social-security-guarantee.
If we can be of any further assistance, please don’t hesitate to contact our free Social Security Advisory Service at 888-750-2622 or via email at [email protected].
Thanks again for the question!
Gerry Hafer
AMAC Foundation Social Security Advisor
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