SOCIAL SECURITY’S complexity never fails to surprise. While many retirees have some sense for what factors determine the size of their Social Security check, few appreciate just how involved the benefits calculation can be.
For example, have you ever wondered what the Social Security Administration does if you continue working after starting benefits? It’s not a simple answer. There are two distinct treatments depending on whether you start benefits before or after you reach your full Social Security retirement age,

THERE’S AN OLD JEST that goes, “How can you tell if someone is a runner?” The answer: “Don’t worry, they’ll tell you.”
I’m a runner and have enjoyed running for more than 20 years. For me, it’s not about aspiring to go farther and be faster. It’s more about being outdoors, getting my heart rate up, clearing my head and just moving my body.
This spring finds me training for a half marathon that I’ll run with my son.

HAVE YOU EVER MADE a plan and then had it go awry? Like the car breaking down on the highway when you’re driving to Christmas dinner, as happened to me several years ago.

Stuff happens. That’s why I can’t understand why many people preparing for retirement seem to have unwavering confidence in their planned budget—one that’s often generated using software or a spreadsheet.

Hiring a financial advisor may help. But for that advice to bolster your chances of success,

WHEN I GOT MY FIRST job in 1976, my employer didn’t offer a 401(k) for one simple reason—the plans didn’t exist. By 1985, a new employer did offer one, so I signed on.
Where had the 401(k) come from? Well, I met the man who put the K into the tax code, and he was beyond humble about it. In fact, he’d forgotten all about it.
Barber Conable Jr. graduated at age 19 from Cornell University to join the Marines Corps in World War II.

WELL, I’M SIX MONTHS into my retirement from the corporate world. How are things going? Any regrets? Any big surprises?
No regrets, for sure. I knew that leaving the workplace at age 61 would be a tradeoff of freedom gained versus money forgone. But I had a second-act dream to pursue—becoming an author—and, for me, that tradeoff was worth going for. So far, it has been. I have my first book out and another in the works.

AT THE PUBLIC POOL where I swam growing up, each hour’s mandatory safety break ended with the announcement that, “You may slowly reenter the water.”
There were two kinds of swimmers during those hot, humid Iowa summers. One group didn’t even hear the entire announcement. They were already enthusiastically running, yelling and jumping feet-first into the pool. The other group walked to the pool, tested the water with one foot and then waded in bit by bit,

I RECEIVED A GREAT education at Northwestern University in the 1980s. But the school’s commitment to excellence seems to have fallen short when it comes to the 403(b) retirement savings plan for teachers and staff.
Northwestern’s plan offers a generous 5% match and more than 400 investment choices, according to court filings. The lengthy list contained some clunkers, though, such as retail-class mutual funds when the plan could have offered lower-cost institutional shares instead.

LIKE SOME OF YOU reading this, I get a thrill from seeing my 401(k) contributions start at zero in January and tick up to the annual limit. I’ve been fortunate to maximize my contributions for most of my 24 working years. Last year, my contributions topped out at the 2021 limit of $19,500. In 2022, I’m aiming to make the maximum contribution of $20,500. For those age 50 and older, you can contribute up to $27,000 in 2022.

DOES ANYONE DOUBT that planning for retirement is unique for each individual?

The way we manage money, how we handle debt, our desired lifestyle and our family status are all important variables to consider. From what I observe, however, many people ignore these differences and seek a one-size-fits-all answer.

I’m addicted to YouTube. In addition to history, archeology and general education videos, I watch many retirement planning shows. I also follow retirement groups on Facebook and bloggers who embrace the FIRE (financial independence-retire early) lifestyle.

I RECENTLY SPOKE with a colleague. I’d expected him to be retired by now. He told me that he’d planned to retire last spring, but his employer offered him a three-day-a-week part-time schedule with full benefits. He discussed it with his financial planner.
The planner told him that, if he retired, he had an 85% chance of meeting his retirement goals. By working part-time for two more years, his chances of meeting his goals went up to 95%.

I FREQUENTLY FIND myself criticized when I state my fiscally conservative views on saving and spending in retirement. One fellow recently said I had no compassion and I was scaring people.

If folks are frightened by my urging them to retire with the ability to replace most of their preretirement income, then perhaps they should be scared.

I’m also criticized because I have a pension, and so don’t rely on investments for my income.

WHEN I WAS IN MY early 30s, I decided to determine “the number.” What would be enough money to allow me to retire, and what was the path to get there?
Personal computers were newly available, so I decided to work this out in Lotus 1-2-3. There was no internet to speak of. Investment companies didn’t have online calculators running Monte Carlo simulations that incorporated hundreds of possible retirement outcomes and spat out a most-likely scenario with a 95% confidence level.

IN A RECENT TWITTER post, a man claimed that if all the Social Security taxes he and his employers pay were invested instead, he’d accumulate $1.9 million by age 67. That sum could then generate $95,000 in annual income, he added, which is more than his anticipated Social Security benefit. He concluded that Social Security was “theft.”

Claims like these bother me greatly because they’re often widely read and believed—and they’re nonsense.

Social Security is an insurance program,

MEET AMERICA’S retirement savings vehicle: the 401(k) plan. Perhaps, instead, you know one of its close cousins: the 403(b), 457 or federal government’s Thrift Savings Plan. These are called defined contribution plans because employees must decide how much to contribute. On top of that, employees are responsible for choosing which investments to buy.
This is a daunting challenge—with high stakes. These decisions determine how much folks will have when they retire. How can you make the most of these plans?