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Retirement

  EPF.18d examine the fundamental
  workings of Social Security and the
system's effects on retirement planning
EPF.18e contrast alternative retirement
                 plans
For many individuals, Social Security is their only retirement plan.
The amount one receives depends on several factors.

Social Security has several types of benefits.


EPF.18d examine the fundamental
workings of Social Security and the
system's effects on retirement
planning
What is the purpose of Social
   Security?


 Social Security was designed as a safety net
 to provide income to older people when they
 could no longer work.
What determines how much one
receives in benefits?

 Social Security benefits are determined
 by the amount an individual has
 contributed to the system and the
 individual’s age when claiming
 benefits.
What are the types of benefits
provided through the Social Security
system?

 Social Security benefits include
 disability and survivor benefits, as
 well as retirement income.
What are some of the concerns about
Social Security when planning for
retirement?

   For retirement planning, Social Security
    payments are likely to be less than
    income has been.

   Most retirees will need to supplement
    through
    savings, investments, continued
    employment, or adjusted lifestyle.
EPF.18e contrast alternative
retirement plans
There are many types of retirement plans. There are
costs and benefits to each.
What types of retirement plans are
   available?
 Individual Retirement Account (IRA)
 tax-sheltered annuity (TSA)
 Keogh plan
 annuity
 employer retirement plan
 public pension plan.
What are the costs and benefits of
each?

Evaluating retirement plans requires
 knowledge of the costs and benefits of
 each type.
For example, one cost of an IRA is the severe
 early-withdrawal fee, which is countered by
 the benefit of contributions reducing taxable
 income.

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Retirement

  • 1. Retirement EPF.18d examine the fundamental workings of Social Security and the system's effects on retirement planning EPF.18e contrast alternative retirement plans
  • 2. For many individuals, Social Security is their only retirement plan. The amount one receives depends on several factors. Social Security has several types of benefits. EPF.18d examine the fundamental workings of Social Security and the system's effects on retirement planning
  • 3. What is the purpose of Social Security?  Social Security was designed as a safety net to provide income to older people when they could no longer work.
  • 4. What determines how much one receives in benefits?  Social Security benefits are determined by the amount an individual has contributed to the system and the individual’s age when claiming benefits.
  • 5. What are the types of benefits provided through the Social Security system?  Social Security benefits include disability and survivor benefits, as well as retirement income.
  • 6. What are some of the concerns about Social Security when planning for retirement? For retirement planning, Social Security payments are likely to be less than income has been. Most retirees will need to supplement through savings, investments, continued employment, or adjusted lifestyle.
  • 7. EPF.18e contrast alternative retirement plans There are many types of retirement plans. There are costs and benefits to each.
  • 8. What types of retirement plans are available?  Individual Retirement Account (IRA)  tax-sheltered annuity (TSA)  Keogh plan  annuity  employer retirement plan  public pension plan.
  • 9. What are the costs and benefits of each? Evaluating retirement plans requires knowledge of the costs and benefits of each type. For example, one cost of an IRA is the severe early-withdrawal fee, which is countered by the benefit of contributions reducing taxable income.