YFP 242: Social Security 101: History, How it Works, and Why it Matters for Your Financial Plan

YFP Co-Founder & Director of Financial Planning, Tim Baker, CFP®, RLP®, talks about social security retirement benefits, how they are funded, how to determine eligibility and considerations for receiving benefits.

Key Points From This Episode

• An introduction to today's topic and a reminder that we can help you with your tax.
• Addressing why people aren't having enough conversations about social security retirement benefits. 
• Hear some intense statistics about retirement and working longer that will blow your mind.
• Talking about the history of social security and the difference between that and a 401(k).
• Being protected against inflation by being inflation-adjusted. 
• Tim talks us through some annuities and numbers in a basic scenario.
• Discussing our huge year next year from an inflation perspective. 
• How retirement is not just a money decision, it's an emotional decision.
• Tim digs a little into the different ways scarcity fear can arise during retirement.
• Looking at your pay stub: explaining credit and payroll taxes.
• The outcomes of the three ages of retirement: early, full, and delayed. 
• Touching on some of the nuances around health and spousal benefits. 

Links Mentioned in Today’s Episode

• File Your Taxes with YFP Tax
• The Social Security Act
• The Biggest Mistakes People Make With Social Security
• My Social Security Account
• YFP Planning: Financial Planning for Pharmacists
• Your Financial Pharmacist Disclaimer and Disclosures