Resources - U.S. Postal Employee Benefits Information Center

CONTINUE YOUR SMART RETIRMENT PLAN

By Following Your Personalized Postal Benefits Retirement & Protection Plan

“It’s not how much you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

PLAN YOUR JOURNEY TO SMART PROSPERTIY

Retirement Income:

Only 1 in 3 Americans are confident or extremely confident they’ll have sufficient income for retirement¹
56% of Americans with a source of lifetime income are still concerned or extremely concerned they’ll outlive their savings²
More than 4 in 5 Americans surveyed consider lifetime income important or extremely important¹
85% of Americans feel it’s important or extremely important to have another source of dependable income besides Social Security¹
88% of high-income earners consider lifetime income important or extremely important³
94% of high-income-earning males believed a source of lifetime income beyond social security is important or extremely important⁴
Just 16% of Americans without a retirement income plan that provides a lifetime monthly dollar amount are confident or extremely confident they have sufficient income to last throughout retirement⁵
People with a retirement income plan that provides a lifetime monthly dollar amount are more than three times as likely (50%) to be confident or extremely confident they have sufficient savings for retirement than those without (16%)⁶

Market Volatility:

61% of Americans are concerned or extremely concerned about the impact of market volatility on their retirement savings¹
73% of high-income earners are concerned or extremely concerned about the impact of market volatility on retirement savings³
Americans aged 50-54 are far more likely (68%) to be concerned or extremely concerned about the impact of market volatility than those 65 to 70 (54%)⁹
85% of high-income earners consider it important or extremely important to be protected from market losses ³
71% of those with $500k or more in assets are concerned or extremely concerned about the impact of market volatility — just 61% of Americans overall share their concern¹⁰
The same percentage of families with assets over $500k (89%) believe that asset growth and market protection are important or extremely important¹⁰

Costs in Retirement:

71% of Americans are concerned or extremely concerned about the impact of inflation¹
88% of high-income earners consider it important or extremely important to have lifetime income that can keep pace with inflation³
74% of Americans with $500k or more in savings are concerned or extremely concerned about the potential for rising taxes in retirement⁷
78% of pre-retirees (aged 55 – 59) are concerned or extremely concerned about healthcare costs in retirement — 64% of those 65+ are concerned or extremely concerned⁸

Retirement Awareness:

85% of Americans think it’s important or extremely important to have an additional source of dependable lifetime income, but 44% don’t know which investment is best-suited to provide it¹
75% of Americans feel tax advantages are important or extremely important in retirement investments¹
58% of Americans who make over $100k a year believe working with an advisor is important or extremely important, compared to 45% of Americans as a whole¹¹
82% of high-income earners believe tax advantages are important or extremely important³
63% of Americans with more than $500k in savings consider working with an advisor important or extremely important compared to 54% of the total population¹⁰
46% of investors who understand the value of an advisor recognized annuities as the best option for lifetime income¹²
More than 68% of clients who believe an advisor is important or extremely important would purchase an annuity with their IRA¹²

COMPLIMENTARY 1-ON-1 REVIEW

When you register for an Online Review or a Live Workshop, you get the opportunity to have a personal One-on-One Meeting with your Educator/Advisor to get your custom Postal Employee Benefits Kit with a Tax-Free Evaluation including a complimentary Retirement Analyzer Plan!

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THE NEXT STEP?

For more information about your Postal Benefits & Retire-Ready Income for Life Report, Schedule an Online Review, Register for a Seminar, or Meet with your Professional Retirement Coach.

INCOME GUIDE: “WILL YOUR MONEY LAST AS LONG AS YOU DO?”

Don’t let a lack of income derail your retirement! Download this 8-page guide to see why a retirement income analysis can be the difference between enjoying retirement or white-knuckling your way through it.

Learn how an experienced financial professional can address your “what-ifs” about retirement — and then help you figure out workarounds.
Read how much more people spend on health care now compared to 1960, when the average cost was just $146 a year. (It’s a whopper!)
Make sure you’re asking the right questions about retirement: How do I make my money last? What can I do to minimize taxes? How could a long-term care strategy help my family’s long-term medical needs?

The 2017 Tax Cuts & Jobs Act (TCJA) Overview

The 2017 Tax Cuts and Jobs Act marked the first major tax reform since 2001 and became effective on January 1, 2018. While changes for corporations and small businesses are, for the most part, permanent, the majority of changes for individuals will expire under a sunset provision in 2025 unless Congress takes steps to make them permanent. This chart provides a broad overview of the most significant changes that may affect you.

Under the 2017 Tax Cuts and Jobs Act (TCJA) many tax brackets, thresholds, and rate changes became effective on January 1, 2018.

Keep in mind, the lower tax rates for individuals in the chart below are going to expire in 2025.

Source: Internal Revenue Service https://taxfoundation.org/2020-tax-brackets

Other changes impacting individual taxpayers:

Increased Standard Deduction ($12,400 for individuals, $18,650 for Head of Household, and $24,800 for married couples).
Expansion of the Child Tax Credit to $2,000 per qualifying child under 17.
$10,000 cap on the Deduction of State and Local Taxes (SALT).
Limitation on Mortgage Interest Deduction.
Beginning in 2019, elimination of the ACA Mandate.
Annual limit of Charitable Contributions increased to 60% of Adjusted Gross Income.
Elimination of the Personal Exemption and the elimination of other deductions such as Moving Expenses, Alimony Expenses, Personal Casualty Loss, and Miscellaneous Itemized Deductions.

For detailed information, click Federal Tax Chart

READY TO TAKE

THE NEXT STEP?

For more information about your Postal Benefits & Retire-Ready Income for Life Report, Schedule an Online Review, Register for a Seminar, or Meet with your Postal Benefits Coach.

Social Security History

The Social Security Program began when President Franklin D. Roosevelt signed the 1935 Social Security Act. Originally named the Social Security Board (SSB) it only provided benefits for workers who became eligible for benefits at age 65.

In 1939, Congress passed amendments to extend benefits to spouses and minor children of retired and deceased workers. Disability benefits started in 1954 and, over the next few years, it was expanded to include the families of disabled workers. Supplemental Security Income (SSI) and cost-of-living adjustments (COLA) were added in 1972.

By 1975, the Social Security Trustee’s report warned that the Old-Age, Survivors, and Disability Insurance (OASDI) Trust Funds were in danger of being depleted by 1979. To address the problem, Congress enacted amendments that increased the payroll tax, increased the amount of income eligible for the payroll tax, and reduced benefits slightly.

During the economic slowdown of the early 1980s the OASDI Trust Funds were again faced with short-term funding problems. As a result, Congress passed law that created a gradual increase over time of the Full Retirement Age (FRA) from 65 to 67. It also increased Social Security tax rates and new Social Security taxes for the wealthiest individuals. This law is still in place today.

How Social Security Works – An Overview Of Social Security

The Social Security program is based on contributions that working Americans pay into the system. While employed, your contributions are made through FICA (Federal Insurance Contributions Act) taxes that are withheld from your paychecks.

To be eligible for Social Security Retirement Benefits, you must accumulate work credits. Your earnings determine the number of Social Security credits you receive each year with a maximum of four credits per year. If you were born in 1929 or after, you need a total of 40 credits (10 years of work). These credits remain on your record even if you change jobs or stop working for a while. When you retire, your monthly benefit is based on your highest 35 years of earnings.

Keep in mind, Social Security was never intended to be the only source of income for retirees. It is estimated that Social Security replaces about 40 percent of an average worker’s income after retiring. In fact most financial advisors say you’ll need 70 percent or more of your pre-retirement earnings to live comfortably after you retire.

When You Can Retire

Understanding Full Retirement Age (FRA)

Due to legislation passed by Congress in 1983, the age workers can start receiving full Social Security retirement benefits has been gradually increasing. Currently, the Full Retirement Age (FRA) is age 66 if you were born in 1943 through 1954. The FRA will gradually rise to age 67 if you were born in 1960 or later.

Early retirement benefits will continue to be available at age 62 but there are two things to keep in mind. At age 62, the amount of your benefit will be reduced because you will be receiving benefits during the years before you reach your FRA (see chart below). And if your full-benefit age is raised to 67, benefits you take at age 62 will be reduced even more.

It’s also important to note The Bipartisan Balanced Budget Act of 2015 introduced substantial changes to Social Security claiming rules. These changes impacted File and Suspend and Restricted Application — two claiming options that enabled married couples to earn Delayed Retirement Credits.

Age To Receive Full Social Security Benefits

(Called “full retirement age” or “normal retirement age.”)

Year of Birth*	Full Retirement Age
1937 or earlier	65
1938	65 and 2 months
1939	65 and 4 months
1940	65 and 6 months
1941	65 and 8 months
1942	65 and 10 months
1943-1954	66
1955	66 and 2 months
1956	66 and 4 months
1957	66 and 6 months
1958	66 and 8 months
1959	66 and 10 months
1960 and later	67
*If you were born on January 1st of any year you should refer to the previous year. (If you were born on the 1st of the month, we figure your benefit (and your full retirement age) as if your birthday was in the previous month.)

INSTANT DOWNLOAD

Four Myths About Social Security Income: “WILL YOUR SOCIAL SECURITY INCOME BE TAXED?”

Don’t let a lack of Information derail your retirement! Download this 6-page guide to see why a retirement income analysis can be the difference between enjoying retirement or white-knuckling your way through it.

Learn how an experienced financial professional can address your “what-ifs” about retirement — and then help you figure out workarounds.
Read how much more people spend on health care now compared to 1960, when the average cost was just $146 a year. (It’s a whopper!)
Make sure you’re asking the right questions about retirement: How do I make my money last? What can I do to minimize taxes? How could a long-term care strategy help my family’s long-term medical needs?

Helpful IRS.Gov Links:

IRA Individual Retirement Arrangements – IRS Form 590-A:
https://www.irs.gov/pub/irs-pdf/p590a.pdf

IRA Individual Retirement Arrangements – IRS Form 590-B:
https://www.irs.gov/pub/irs-pdf/p590b.pdf

Updated Tax Withholding Calculator:
https://www.irs.gov/individuals/irs-withholding-calculator

Detailed Information About Credits & Deductions:
https://www.irs.gov/credits-deductions-for-individuals

Get Your Tax Record:
https://www.irs.gov/individuals/get-transcript

IRS Tax Tips & Tools:
https://www.irs.gov/newsroom/irs-tax-tips

The Latest “Dirty Dozen” Phone & Email Tax Scams:
https://www.irs.gov/newsroom/dirty-dozen

IRS Consumer Alerts:
https://www.irs.gov/newsroom/tax-scams-consumer-alerts

IRS Fact Sheets:
https://www.irs.gov/newsroom/fact-sheets

COMPLIMENTARY 1-ON-1 REVIEW

READY TO TAKE

THE NEXT STEP?

For more information about your Postal Benefits & Retire-Ready Income for Life Report, Schedule an Online Review, Register for a Seminar, or Meet with your Postal Benefits Coach.