Thomas Slatcoff Blog

Thomas Slatcoff March 19, 2024

In Motion with Purpose© —No one can rely solely on Social Security payments to finance retirement. At the age of 16, you must set your date for retirement and have a clear written plan to self-fund your retirement income streams. Self-funding gives you the most significant window of time to achieve your goal, and time is of the essence with this personal financial goal.

These are three articles that caught my attention:

Article 1 Raising the Social Security age? Ron DeSantis said no and Haley said yes. This is what would happen if it increased. Story by Alessandra Malito January 11, 2024.

Article 2 Here’s How Long You Can Expect To Live in Each State (Ranked). Story by Conor Jameson January 11, 2024.

Article 3 Why life expectancy in the US is falling by Robert H. Shmerling, MD

After reading the articles, I must shout out to those 16 years or older to say Stop! Take a moment to Begin with the End in Mind (reference Habit 2 of Stephen R. Covey’s The 7 Habits of Highly Effective People). Ask yourself, What year do I want to retire? Then write it as a goal. Then, ponder how you will achieve your goal and list the steps you want to take. Then act!

If Presidential Candidate Nikki Haley is elected President and is true to her campaign statement to raise the Social Security (SS) full retirement age (FRA) to 70 as outlined in Article 1. And, if we use the life expectancy that Article 2 outlined, men in the states of Louisiana, West Virginia, and Mississippi with a life expectancy of 69.9, 69.8, and 68.6, respectively, would not receive any SS payments from the money they paid into SS because they will pass before the age of 70. For the states of Alabama, Kentucky, and Tennessee, male recipients of SS payments would receive 1, 6, and 7 payments, respectively, because the men in those states will pass at the age of 70.1, 70.6, and 70.7, respectively.

Also, how will going from an FRA of 67 to an FRA of 70 impact the SS payment if a recipient decides to receive payments early? What will the reduced payment look like for recipients between 62 and 70? 

And then there is Article 3. If life expectancy continues to fall, more people will not receive SS payments or a reduced number of monthly payments based on an FRA of 70.

Again, you must ask yourself, What year do I want to retire? You must set a goal now to give yourself the most significant window of time to achieve your goal.

We may continue to analyze the data, but politicians are considering reducing the number of years SS recipients will receive payments to keep the SS fund solvent. SS payments can no longer be a person’s sole income stream in retirement. And do you want to retire at 70, the government-set age?

Financial literacy is required to properly manage your personal finances and retire when you say you will retire.

If you are struggling with you personal finances, The THOMAS SLATCOFF FINANCIAL LITERACY INSTITUTE is “enthusiastically poised to assist you” with gaining, enhancing, or refining your financial literacy through the following financial literacy coaching sessions –

DOLLARS AND SENSE Financial Literacy Workshop™ 

Individual Financial Coaching: One-on-One +1

Family Financial Coaching: Parents + children 

Group Financial Coaching: 10 to 30 people 

We want to help you succeed financially!

For more information about the financial literacy workshop or the coaching sessions and to book a session, go to SLATCOFF.com.

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