Darcy Bergen is the owner of Bergen Financial Group and has over 20 years of experience as a financial advisor. During the two decades as a financial advisor, Darcy Bergen has advised his clients on retirement and other business concerns. Aside from working with his clients, Darcy Bergen enjoys teaching young Americans how to make the most out of their finances. Darcy Bergen mentions young Americans have many misconceptions when it comes to Social Security benefits. He explains what young Americans need to know about Social Security Benefits in 2020.
Young Americans Will Have Access to Social Security Benefits When They Retire
The main question young Americans ask about these benefits is, “will Social Security benefits be around when I retire?” As a financial advisor, Darcy Bergen gets many questions from his customers regarding social security benefits. For many years, Americans have heard a rumor that Social Security pays more money than what it brings in. There have been financial predictions that mention Social Security will entirely run out by 2037. Although most people who worry about Social Security benefits are those who are approaching retirement age, Darcy believes young Americans should stay current on the latest news.
Why do people presume that Social Security benefits will run out by the year 2037? The reason behind this prediction is simple, for starters, the population lives longer, and birth rates are low. While people might continuously contribute to Social Security longer, not as many beneficiaries are born. However, as long as those contributions continue, there will be enough money in 2037 to pay beneficiaries of at least $760 a month.
Social Security Will Not Be Enough Retirement Income
The Social Security Administration states that currently, 50 million Americans receive these benefits totaling $614 billion annually*. According to Darcy Bergen, not many young people know what the role of Social Security will play in their retirement. Even if $614 billion seems like a large quantity, it comes out $12,000 a year per person. It isn’t very easy for Americans to make ends meet with an annual Social Security income of $12k. While this amount is not enough, over two-thirds of the elderly population relies on Social Security to provide over half of their income.
As someone who has been offering financial advice for the better part of twenty years, Darcy Bergen wants young Americans to know they should not rely on Social Security as their income. It’s also important to keep in mind that many people need Social Security benefits before retirement. On average, 3 out of 10 people will become disabled before retirement age and need to collect Social Security before retirement. Because so many people will rely on Social Security benefits if they become incapacitated, this is not a reliable source of income.
For more of Darcy Bergen’s tips on Social Security and retirement benefits, check out darcybergen.co.
Darcy Bergen has over 20 years of experience as a financial advisor helping his clients with their financial needs, such as planning for retirement. After all of those years of experience, Darcy Bergen has seen many young adults putting off planning for retirement. Many people in their 40s and 50s have retirement in mind, but many young people fail to start thinking about it in their 20s when they join the workforce. Darcy Bergen shares vital points to keep in mind when planning for retirement early on in life.
It’s Never Too Late to Make Retirement a Priority
It cannot be very easy for young adults to make retirement a priority when they have more pressing needs to take care of. They don’t prioritize their retirement savings because they believe they have more time to start saving. Who wants to think about saving for something that will happen 40 years from now when they have large bills now? Darcy Bergen believes all young adults will make a significant impact on their retirement savings if they make them a part of their monthly expenses. Any amount they put away will make a difference.
Take Retirement Benefits into Account When Applying for a Job
When young adults are in the process of entering the workforce after college, they often take jobs that will pay the bills and will build their resume. The last thing on their minds is the 401(k) plan because they think they will have more time once their careers have been established. Taking this approach could be beneficial to make them better candidates for more opportunities in the future, but it won’t help them save for retirement. Darcy Bergen advises against taking jobs that don’t have a 401(k) plan to offer their employees. If possible, he recommends only applying for jobs that offer retirement benefits.
Enrolling in Employer Offered 401(k) Plans
Many young Americans don’t take advantage of the plans offered by their employers. Only 25% of working young adults use the retirement savings plans offered by their employers. The employer-provided 401(k) plans are an excellent way for people in their 20s to start saving for retirement. Another advantage is that many employers match the contributions of their employees. Darcy Bergen mentions not taking advantage of these retirement plans could be a big mistake in the long run.
For more information and tips on saving for retirement and other financial benefits, check out darcybergen.co
Financial planner, Darcy Bergen has over 20 years of experience helping clients plan for retirement. He is the owner of Bergen Financial Group and has helped clients with their investment, Social Security Benefits, Fixed Index Annuities, retirement planning, and other financial needs. Research shows that only 70 percent of Americans are ready for retirement. For the 30 percent who aren’t, Darcy Bergen shares questions everyone should ask themselves to prepare for retirement.
What are Your Sources of Income During Retirement?
Although planning for retirement should start in their 20s or 30s, many people put it off until they’re approaching retirement age. For those individuals approaching retirement age, Darcy Bergen recommends they take a look at what their sources of income will be once they transition into retirement. Some people will rely on their tax-advantage retirement accounts such as 401(k) or IRAs, while others will mostly rely on their Social Security income. Even with those sources of income, it might not be enough for retirement. Darcy Bergen recommends people start planning early and try to diversify their income by starting a business or investing in rental properties.
Do You Have the Income to Pay for Healthcare Expenses?
Once they reach the age of 65, people can start collecting Medicare to cover their medical expenses. However, their healthcare-related costs are likely to increase over time. Medicare only covers about 50% of medical expenses, and they will still be responsible for co-pays and other out of pocket expenses. Darcy Bergen suggests retirees look into supplemental health insurance, such as contributing to a Health Savings Account (HSA). HAS accounts offer flexibility, are tax-free, and will help cover medical expenses not covered by Medicare.
Do You Have a Solid Retirement Account?
After 20 years in the industry, Darcy Bergen has encountered many clients who don’t know how much they actually have saved in their retirement accounts. Staying on top of their retirement accounts will help simplify the process of them in the long run. Darcy advises people approaching retirement age to meet with a retirement planning advisor to review their current accounts and come up with a plan.
How Do You Plan on Spending Your Retirement?
Deciding how they want to spend their retirement is an important step that many people overlook. Do they plan to downsize their home? Do they wish to travel? The answers to these questions will help shape their retirement plan.
Financial advisors like Darcy Bergen help clients answer these and other tough questions to ensure their clients have the life they deserve once they retire. For more of Darcy Bergen’s financial tips on retirement, check out darcybergen.co.
Darcy Bergen is the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. He has over 20 years of experience helping clients with their financial planning needs from IRAs, Social Security benefits, and Fixed Index Annuities. Darcy Bergen says the key to a happy retirement is to start planning early. However, only about 71 percent of Americans are financially prepared for retirement, and the other 29 percent have trouble with budgeting and living a comfortable retirement. Darcy Bergen shares tips for those who want to learn how to budget for retirement.
While having a nice big house with a yard is great, retirees can accrue a lot of expenses while trying to maintain the house. Darcy Bergen recommends those who want to live more frugally during retirement, should give their housing situation a bit more consideration. Retirees who want to live on a budget consider moving somewhere where the cost of living is more affordable, downsizing or find ways to get rental income. In the long run, even yard maintenance can add up and become a burden on the fixed income of a retiree. Moving to a smaller house or a condo is something many retirees should consider.
Treating Their Retirement Accounts Like a Paycheck
One of the best things retirees can do is manage their retirement funds like a paycheck. Darcy Bergen mentions it’s a good idea to set up automatic withdrawals from their accounts. During retirement, it’s tempting to know that they have access to a large pool of money; however, those funds are not unlimited. Setting up money transfers from their accounts on a weekly or bi-weekly is called a systematic withdrawal. Talking to a financial advisor will ensure they make the withdrawal process more convenient.
Healthcare Should Be a Priority
During retirement, it’s more important than ever for senior citizens to stay healthy. The average retiree spends $4,300 on out-of-pocket healthcare expenses. Although it’s impossible to predict the health of a person, there are preventative measures retirees can take to stay healthy. Exercising regularly and eating home-cooked hearty meals, for example, can help them save a lot of money down the line. Senior citizens can prevent many conditions that can lead to health complications such as high cholesterol, only by eating right.
For more of Darcy Bergen’s retirement tips and other concerns, check out darcybergen.co.
Darcy Bergen is the owner of Bergen Financial Group and has over 20 years of experience helping clients with their financial planning needs from IRAs, Social Security benefits, and Fixed Index Annuities. Darcy Bergen believes a healthy financial life starts early on, which is why he shares tips for parents.
Teach them from an Early Age that Items Cost Money
Darcy Bergen stresses the importance of teaching children from an early age that things cost money. To teach children about the value of things, parents should allow their children to pay for toys at the store every once in a while. If children have a piggy bank or get money for their birthdays, teaching them they can exchange cash for toys will give them a sense of the value of money.
Teach Them to Save
Children absorb a lot of information from an early age, so it’s essential to teach them how to save. When children are young, show them how to put money in a jar or piggy bank. For example, if they want to buy a more expensive toy, put the name of the toy in the jar and start putting money in there. Whenever they clean their room or complete a chore, parents can give them a little money for their jars.
Lead By Example
Even if parents don’t realize it, their children pay attention to everything they do. If children hear their parents talking negatively or stressing about money, they will grow up with that stigma. Instead of complaining about money or having bad habits, teach children to have a healthy relationship with finances from an early age.
Help Children Earn Their Allowance
Rather than giving them an allowance simply because they ask for, Darcy Bergen recommends parents should teach their children to earn their allowance. If they do their chores and keep their room clean, then they will be entitled to their allowance. However, if they fail to complete their chores, then parents can deduct money from their allowance. Showing them, they have to earn their allowance will help them financial responsibility.
Don’t Teach Them About Impulse Purchases
Darcy Bergen recommends parents avoid teaching their children about impulse purchases. If their children want an expensive toy, it’s best to tell them to wait for Christmas or their birthday. If parents start buying everything their children want when they ask for it, they will set a poor financial example.
For more of Darcy Bergen’s financial tips and other concerns, check out darcybergen.co.
Darcy Bergen has over 20 years of experience helping clients with their financial planning needs from IRAs, Social Security benefits, and Fixed Index Annuities. Darcy Bergen is also the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. Only about 71 percent of Americans are financially prepared for retirement, and the other 29 percent have to figure out how to make ends meet. Darcy Bergen shares tips for living on a budget during retirement.
Give Yourself a Paycheck
While it might be tempting during retirement to know that you have access to a large pool of money, those funds are not unlimited. According to Darcy Bergen, the best way to stick to a budget during retirement is by setting up a retirement paycheck. Instead of having full access to their retirement accounts, retirees should set up automatic withdrawals from their accounts. They can choose to have money automatically transferred from their accounts on a weekly or bi-weekly basis to have more control over their budgets. Darcy Bergen mentions the name of this process is a systematic withdrawal, and they can ask their financial advisors for more information.
Housing and Accommodations
Those who want to live more frugally during retirement should give their housing situation a bit more consideration. While having a nice big house with a yard is great, retirees can accrue a lot of expenses while trying to maintain their house. Even yard maintenance work can add up in the long-run. Darcy Bergen recommends retirees who want to live on a budget consider moving somewhere where the cost of living is more affordable, downsizing, or find ways to get rental income. Many retirees also give up the big house and choose to move into a smaller condo.
The average retiree spends $4,300 on out-of-pocket healthcare expenses. While there’s no way of predicting what their health will be down the line, retirees can save additional dollars by making an effort to stay healthy. Many retirees can prevent many conditions such as high cholesterol and even diabetes by eating right and staying healthy. Eating home-cooked hearty meals and exercising will help them save a few bucks on medical bills.
Take Advantage of Senior Discounts
For those seniors who want to make the most out of retirement on a budget, the best way is to take advantage of the many discounts available to them. Saving money by taking advantage of discounted movie tickets, deals while eating out, or senior days at the grocery store can help them make the most out of retirement.
For more of Darcy Bergen’s retirement tips and other concerns, check out darcybergen.co.
As the owner of Bergen Financial Group, Darcy Bergen has been a financial advisor for over 20 years. Darcy Bergen advises his clients on retirement and other financial concerns. Although many of his clients are those approaching retirement age, he likes to offer advice for young Americans to help them think about retirement before it’s too late. For starters, there are a lot of misconceptions regarding Social Security benefits Darcy Bergen wants young people to know.
Will Young Americans Have Access to Social Security Benefits When They Retire?
As a financial advisor, Darcy Bergen gets many questions from his customers regarding social security benefits. Although most people who worry about Social Security benefits are those who are approaching retirement age, Darcy believes young Americans should ask more questions about it.
The main question young Americans should ask is, “will Social Security benefits be around when I retire?” For many years, Americans have heard a rumor that Social Security pays more money than what it brings in. Some stats even say that Social Security will run out by the year 2037. According to the government, young Americans don’t have to worry about it running out before they reach retirement age.
The reasoning behind this fact is that the population lives longer, and birth rates are low. It means that people contribute to Social Security longer, and not as many beneficiaries are born. For this reason, if those conditions persist, there will be enough money in 2037 to pay beneficiaries at least $760 a month.
Social Security is Not Enough Retirement Income
According to Darcy Bergen, not many young people know what the role of Social Security will play in their retirement. As someone who has been offering financial advice for the better part of twenty years, Darcy Bergen wants young Americans to know they should not rely on Social Security as their income.
The Social Security Administration states that currently, 50 million Americans receive these benefits totaling $614 billion annually. Even if this seems like a lot of money, it only equals $12,000 a year. Not many people can make ends meet with an annual income of $12k. However, over two-thirds of the elderly population relies on Social Security to provide over half of their income.
It’s also important to keep in mind that many people need Social Security benefits before retirement. On average, 3 out of 10 people will become disabled before retirement age and need to collect Social Security before retirement.
For more of Darcy Bergen’s tips on Social Security and retirement benefits, check out darcybergen.co.
Darcy Bergen has over 20 years of experience as a financial planner helping his clients plan for retirement and other financial needs. He is also the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. Although many clients contemplating retirement inquire about life insurance, Darcy Bergen believes people in their 20s should also be thinking about it.
They Have Debts
Although it’s hard to imagine people in their 20s have a lot of debts versus someone in their 40s, many young people graduate college with a significant amount of debt. On average, college students graduate with an average of $29,800 in debt. Darcy Bergen mentions that student loans are not the only debts millennials have to deal with. Most adults in their 20s have car loans, credit card debt, and even personal loans.
Young people figure they will live a long time and be able to pay off their debts, but for some, this is not the case. If someone dies, the debts don’t just disappear. Many can leave their family members to pay the bill. If someone in their twenties has a lot of debts, Darcy Bergen explains it might not be a bad idea to get a life insurance policy. Depending on the policy, someone in their 20s who is healthy can get a $200,000 term life insurance policy for 20 years.
The average marriage age in the United States is 27.8 for women and 29.8 for men. Based on these statistics, there are plenty of people in their 20s who are married. If someone is married in their 20s or at any age, Darcy Bergen explains getting a life insurance policy is a smart idea.
When a spouse passes away, there’s no way of telling what the economic impact will be on the spouse. Married couples often have many expenses together, such as mortgages, car loans, credit cards, and other debts. Taking a life insurance policy in your 20s is one of the best ways for a spouse to protect each other financially.
If a person is in their 20s and has children, Darcy Bergen suggests they look into a life insurance policy. For example, taking out a 20-year term life insurance plan when a child is born or a few years old will leave them with protection until they’re in their late 20s. No parent wants to imagine leaving their child unprotected in case of the imaginable. The younger and healthier the parent is, the better policy they can get to protect their children.
Darcy Bergen is the owner of Bergen Financial Group and has over 20 years of experience helping clients plan for retirement and other financial solutions. Although most of Darcy Bergen’s clients are those who are getting close to retirement age, he wishes more people in their 20s and 30s sought the help of a financial advisor.
In fact, research shows only 25 percent of working young professionals take advantage of retirement savings plans offered by their employers. Also, only 39% of adults started saving for retirement in their 20s. According to Darcy Bergen, there are a few steps young adults can take to contribute to their retirement at an early age.
Make Retirement Contribution a Priority
Darcy Bergen believes one of the reasons why young people don’t start saving for retirement early on is because they don’t think it’s a priority. After all, they believe, paying off their student loans or credit card debt seems more important than saving for retirement. They also believe they must start with a large contribution towards their retirement account. Darcy Bergen believes all young adults should account saving for retirement as part of their monthly expenses. Even putting away $25-per-month can make a big difference in the future.
Take Advantage of a 401(k) Plans
Although a lot of employers offer 401(k) plans, not many young adults take advantage of them, according to Darcy Bergen. Taking advantage of 401(k) plans is a great way for people in their 20s to start saving for retirement. First of all, 401(k) contributions get taken out of their paychecks before taxes, which means they won’t have to pay taxes on this income in that given year. Also, many employers match the contributions of their employees. For example, if they contribute $100 a month towards their retirement plan, their employers will contribute an additional $50. In a year, employees could save an additional $600 a year.
Consider Retirement Benefits Before Taking a Job
Many young people don’t consider retirement benefits when they accept a job offer, according to Darcy Bergen. As they get older and move up in the corporate world, young professionals should consider retirement benefits when accepting a job offer. The earlier they start contributing, even if the contribution is small, the better off they will be. Darcy Bergen advises young professionals from taking jobs that don’t offer a comprehensive retirement plan.
For more information and tips on saving for retirement and other financial benefits, check out darcybergen.co.
According to Darcy Bergen, who has been a financial planner for over two decades, Social Security benefits always bring some confusion in his clients. For those approaching retirement age who have recently lost a spouse, the confusion and uncertainty can be even greater. Even though every month, 59 million people receive Social Security Benefits, there is still a lot of information Americans don’t know. What happens when a surviving spouse wants to claim the Social Security benefits of their deceased spouse? Darcy Bergen offers an overview of how to use the Social Security benefits of a deceased spouse.
In order to qualify for Social Security benefits of their deceased spouse, the surviving spouse has to show evidence the marriage was at least nine months long. According to Darcy Bergen, the deceased spouse should have had also worked long enough to accumulate Social Security benefits. Those who meet these basic requirements can collect widower/widow Social Security benefits.
When Can Surviving Spouses Start Collecting?
Surviving spouses have to wait until they’re at least 60 years old to receive their Social Security survivor benefits. According to Darcy Bergen, they will only get 70% of the benefit at this age. They will have to wait until they reach full retirement age to receive the full benefit. The retirement age is 66 for those born between 1945-1956. It’s expected to increase to age 67 for those born in 1962 and later.
However, Darcy Bergen explains there are a few age exemptions. For example, those who are disabled can start collecting the survivor benefit as early as age 50. Those surviving spouses who care for the child of their deceased spouse who is under the age of 16, can collect the benefits at any age.
How Much Do Surviving Spouses Get?
According to Darcy Bergen, the exact monthly dollar amount surviving spouses can collect will depend on how much their deceased spouse collected over their lifetime. If the deceased spouse never collected any Social Security benefits, then they will be eligible for the full amount once they reach retirement age.
Social Security Benefit Exceptions
Darcy Bergen advises the surviving spouse that some exceptions could prevent them from collecting the benefits. For example, if a spouse remarries before turning 60 or 50 if disabled, they will lose their eligibility. Also, if the deceased spouse had any dependent children, there might be a limit on the amount disbursed per family.