Should You Claim Social Security at 70? - The Motley Fool

The tricky thing about filing for Social Security is that you're not limited to a single age in doing so. You're allowed to claim benefits as early as age 62, and while you technically don't have to file by 70, there's no financial reason to wait past that point. As such, 70 is generally considered the latest age to take benefits -- but it is the right time for you?

Why file for Social Security at 70?

Your monthly Social Security benefits are calculated based on how much you earned during your highest-paid 35 years of wages, and you're entitled to your full monthly benefit once you reach full retirement age. That age, depending on your year of birth, is either 66, 67, or somewhere in between. Now as mentioned earlier, you're allowed to file for benefits sooner, but for each year you claim Social Security ahead of full retirement age, your benefits will be reduced, and in most cases, on a permanent, lifelong basis.

IMAGE SOURCE: GETTY IMAGES.

On the other hand, you also get the option to delay benefits past full retirement age, and boost them by 8% for each year you hold off. This incentive runs out at age 70, but if you're looking at a full retirement age of 67 and you file at 70 instead, you get a 24% increase in benefits that remains in effect for the rest of your life.

Clearly, that's a pretty good incentive to file for Social Security at 70. But in some cases, waiting that long doesn't make sense.

When 70 is the wrong age to file

Though claiming Social Security at 70 will increase your monthly benefits, it won't necessarily increase your lifetime benefit -- meaning, the total you collect from Social Security all-in. The longer you end up living, the more filing at 70 makes sense. And while you can't predict your own life expectancy, you can use your health nearing retirement as a guidance point. If your health is terrible, you're generally better off filing for Social Security early or on time. But if your health is great, and you have reason to believe you'll live a long life, then filing at 70 could pay off.

Imagine you're entitled to a monthly benefit of $1,500 at age 67. Waiting until 70 to claim Social Security will raise each monthly payment you get to $1,860, but you'll also collect 36 fewer payments in the process. At that point, you'll need to live until age 82-1/2 to break even -- meaning, to come away with the same lifetime total regardless of whether you file at 67 versus 70 -- which means that if you don't expect to live that long, filing at 70 is a bad idea.

Another reason you might claim Social Security before age 70? You've lost your job, can't find a new one, and don't have enough savings to pay your bills. At that point, you're better off taking benefits sooner than racking up dangerous credit card debt to pay your living expenses.

Finally, you might take benefits earlier than age 70 if you're secure financially, but simply want the money to travel or enjoy retirement when you're on the younger side. For example, if you have more than enough savings come age 65 to pay your senior living expenses for 30 years or longer, but you want your Social Security income to fund a number of expensive trips, then why not go for it? You've earned it, and you're apt to have more energy for that sort of thing at 65 than at 70.

The fact that you get the choice of when to file for Social Security is a good thing in theory. Still, it's not an easy decision. If you're thinking of claiming benefits at 70, take your health into account, and only wait that long if you believe you have a decent lifespan ahead of you. Otherwise, it may be worth collecting a lower monthly benefit, but increasing your chances of walking away with a higher lifetime total from Social Security.

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https://www.fool.com/retirement/2019/08/04/should-you-claim-social-security-at-70.aspx

2019-08-04 12:49:00Z
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Flights cancelled at London Heathrow Airport due to industrial action - International Flight Network

Heathrow Airport's Terminal 5. Photo: © Heathrow Airport

Issues around workers pay have lead to members of the Unite workers union opting to strike on Monday 5th and Tuesday 6th of August. The resulting action means that a total of 177 flights (at the time of writing) have been cancelled from both day’s schedules. The Unite Union claim that up to 2,500 workers will take part in the strike, which will affect all areas of the airport’s operation.

The action is set to cause chaos with passengers, with London Heathrow being the busiest airport in Europe, and the busiest two-runway airport in the world, seeing an average of around 1,300 aircraft movements per day. As ever with disrupted airport operations, passengers are being advised to check with the airline they are travelling with for updates regarding their flights.

Matt is a London-based writer and reporter for International Flight Network who has been involved in aviation from a very young age. He has a particular focus on aircraft safety, accidents and technical details.

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2019-08-04 11:54:40Z
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10 Social Security Figures Every Worker Should Know - The Motley Fool

Social Security is our nation's most successful social program, at least in the words of presidential hopeful, Sen. Bernie Sanders (I-Vt.) -- and the data certainly backs up this statement. After all, more than 63 million people each month, 70% of which are retired workers, are receiving a monthly benefit check.

But as you may know, it's also a program that most workers generally misunderstand. Just take a gander at any Social Security survey for confirmation. If you're currently in the workforce and expect to receive a Social Security benefit when you retire, here are 10 figures you need to know.

Image source: Getty Images.

1. $1 trillion in revenue per year

First of all, you should understand just how massive the Social Security program has become. Last year, Social Security generated $1 trillion in annual revenue for the first time in its history, with the bulk of this income ($885 billion) deriving from the 12.4% payroll tax on earned income. The remainder came from the taxation of Social Security benefits (which I'll touch on a bit later on), and interest income earned on the program's nearly $2.9 trillion in asset reserves. These asset reserves are invested in special-issue federal bonds that earn interest.

2. 22.1 million people kept out of poverty

Social Security has proven to be an incredibly effective tool at keeping seniors, as well as the long-term disabled, out of poverty. An analysis from the Center on Budget and Policy Priorities found that 22.1 million people were being kept out of poverty each year solely as a result of their Social Security payout, including over 15 million retired workers. Without a monthly Social Security payout, the elderly poverty rate would more than quadruple to over 40%.

3. Your full retirement age (probably 67)

It's also imperative that workers know their full retirement age (FRA). Your full retirement age is the age at which the Social Security Administration deems you eligible to receive 100% of your monthly benefit, as determined by your birth year. Claiming benefits before your FRA means accepting a permanent reduction to your monthly payout, whereas claiming after your FRA can actually increase your monthly benefit above 100%. Most future retirees will have an FRA of 67 years, although you can find your unique full retirement age with this handy Social Security Administration table.

Image source: Getty Images.

4. $1,471 average monthly benefit

You should understand that Social Security isn't going to have you rolling in the dough. The average retired worker was bringing home $1,470.83 a month, as of June 2019. Although this works out to more than the federal poverty level on an annual basis, the grand total for a full year is "only" $17,650, when rounded. As you'll see in the next point, it's not designed to be a primary source of income.

5. 40% is the expected wage/salary replacement level

According to the Social Security Administration, your retired worker payout is designed to replace about 40% of your working wages or salary. Although this percentage could be a bit higher for lower lifetime income workers, and lower for more well-to-do workers, the point is that Social Security benefits aren't expected to be more than a secondary source of income. In other words, Social Security income doesn't take the place of your need to save and invest for the future.

6. 62% of retired workers lean on their payout for at least half of their income

As you probably guessed, few seniors actually follow the guideline on replacement wages. The Social Security Administration found that 62% of retired workers lean on the program to supply at least half of their monthly income, with 34% reliant on Social Security for virtually all of their income (90%-plus). As you'll see in an upcoming figure, overreliance on Social Security for your monthly income can be dangerous.

Image source: Getty Images.

7. 4% of retired workers claim Social Security at age 70

Retired worker benefits can be claimed at age 62, or any point thereafter, with benefits growing by approximately 8% per year for each year that an individual holds off on taking their payout, up until age 70. Despite this dangling carrot of an incentive, a majority of retired workers claim benefits early (at or before age 64), thereby permanently reducing their monthly payout to less than 100%. Meanwhile, only 4% of retired workers wait as long as possible (age 70) to maximize their monthly payout. Interestingly enough, a recent study found age 70 to be the single best age to take Social Security benefits, albeit there's still no one-size-fits-all claiming age for everyone.

8. About half of all senior households pay federal tax on their benefits

Ready or not, there's a pretty good chance you'll be paying federal tax on a portion of your Social Security benefits. If your modified adjusted gross income (MAGI), plus one-half of your Social Security benefits, exceeds $25,000, or $32,000 if you're a couple filing jointly, you can be taxed on up to half of your benefits at the federal ordinary income rate. Further, using the same MAGI plus one-half benefits formula above, if you're above $34,000 as a single filer, or $44,000 as a couple filing jointly, up to 85% of you benefits could be subject to federal taxation. Today, around half of all senior households owe tax on their benefits, according to The Senior Citizens League.

9. 13 states tax Social Security benefits

Here's the "but wait, there's more" moment. In addition to federal taxation, 13 states also tax Social Security benefits to some varied degree. Quite a few offer very generous income exemption levels, such as Missouri, where a single filer and couple can earn up to $85,000 and $100,000, respectively, before facing any state-level tax on their Social Security benefits. Even states that have mirrored the federal tax schedule are becoming a bit tax-friendlier. Nevertheless, if you live in one of these 13 states, you could be hit with double taxation on your Social Security payout.

Image source: Getty Images.

10. 2035 is when the program could exhaust its asset reserves

Lastly, as promised, being overly reliant on Social Security could come back to haunt you. The newest annual Social Security Board of Trustees report estimates that the program's nearly $2.9 trillion in asset reserves will be completely exhausted by 2035, with a number of demographic changes resulting in larger net-cash outflows with each passing year. Although Social Security won't go bankrupt -- its recurring sources of revenue prevent it from insolvency -- the trustees' report projects that, sans congressional involvement, benefits could be cut by up to 23% for retired workers in 2035 to ensure payouts through 2093. This is even more reason Social Security should be considered an ancillary, not primary, source of income during retirement.

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https://www.fool.com/retirement/2019/08/04/10-social-security-figures-every-worker-should-kno.aspx

2019-08-04 10:06:00Z
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When's right time to claim Social Security? | News, Sports, Jobs - Warren Tribune Chronicle

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1. When's right time to claim Social Security? | News, Sports, Jobs  Warren Tribune Chronicle
2. Don't rely on Social Security for future retirement plans: advisers  New York Post
3. Why Do So Many People Claim Social Security at 62?  The Motley Fool
4. EDITORIAL: Democrats pushing large increase in Social Security taxes  Las Vegas Review-Journal
5. How Your Work History Determines How Much You Get From Social Security  The Motley Fool
6. View full coverage on Google News

https://www.tribtoday.com/news/local-news/2019/08/whens-right-time-to-claim-social-security/

2019-08-04 05:09:28Z
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Latest in Mortgage News: Why the Fed Cut Rates this Week - Mortgage Rates & Mortgage Broker News in Canada - Canadian Mortgage Trends

Class action lawsuit launched in Vancouver over Capital One data breach - Vancouver Is Awesome

Tim Hortons bets future growth on trends and innovation in competitive market - CTV News

The Canadian Press
Published Friday, August 2, 2019 9:08AM EDT
Last Updated Friday, August 2, 2019 12:03PM EDT

TORONTO -- Shares in Restaurant Brands International Inc. soared Friday as the company reported strong second-quarter earnings that widely exceeded analysts' expectations.

The parent company of Tim Hortons says its rapid adoption of new tastes and technologies is helping drive sales growth across its more than 26,000 restaurants globally.

Restaurant Brands International Inc., which is also behind Burger King and Popeyes, has been busy adding plant-based protein menu items and options like digital kiosks, delivery and apps to attract customers in the competitive fast-food industry.

For Tim Hortons, that has included new breakfast sandwiches and burgers featuring Beyond Meat patties, remodelled restaurants, a new loyalty program, and a new cafe at its head office to test out potential offerings.

"Our vision for innovation with Tim Hortons, in particular in Canada, has been to listen to our guests and bring what we're calling on-trend innovation," said Tim Hortons president Alex Macedo.

The efforts have helped increase sales, though growth at Tim Hortons has lagged the company's other brands.

Tim Hortons comparable sales were up 0.5 per cent in the last quarter compared with flat sales last year, while Burger King, where the company announced Thursday it was rolling out the plant-based Impossible Whopper nationally in the U.S., saw comparable sales up 3.6 per cent and Popeyes up three per cent.

The company says it's still in the midst of a refresh for Tim Hortons, where it remodelled 400 restaurants last year with aims to do the same this year, and has plans for "super urban" shops for major cities like Toronto and Vancouver.

The loyalty program Tims has rolled out will also give it unprecedented ways to see how its new products and designs are working, said Macedo.

"The true beauty of the program is learning about their habits, understanding when they come, why they come, and trying to make their experience better," he said in an interview.

"We have an infinite amount of data that we're collecting, and I think over the next mid to long run this will materially change the way we relate to our guests."

Roughly seven million Canadians have already signed up for the program, while about half of its customers are either swiping their card or using the app for purchases, said Macedo.

The wide variety of changes pose challenges for the franchisees, who have pushed back on orders from above in the past, but Macedo said the changes are going well since many owners manage only one or two restaurants.

"It's a lot, but we've been able to roll this out because of the quality of our restaurant owners, and it's been very productive for the business."

Overall, Restaurant Brands saw system-wide sale growth of 7.9 per cent in the quarter ending June 30, helped by the 1,245 more restaurants it had in the second quarter than the same period last year.

The company, which reports in US dollars, said total revenue for the quarter came in at $1.4 billion, up from $1.343 billion last year, and largely in line with expectations of $1.383 billion.

Tim Hortons represented $842 million of that revenue, up from $823 million last year.

Company-wide adjusted net income came in at $331 million, or 71 cents per share, compared with earnings of $313 million or 66 cents per share last year, and ahead of analyst expectations of $296 million, or 65 cents per share according to financial markets data firm Refinitiv.

The company's shares surged $5.59, or 5.8 per cent, in midday trading on the Toronto Stock Exchange.

The company continues to expand internationally, including new partnerships for Popeyes in China and Spain, and Tim Hortons in Thailand. Restaurant Brands has set a target of growing its total locations to more than 40,000 over the next eight to 10 years.

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August 02, 2019 at 11:03PM