Retirement Planning FAQs
After working with Ohio retirees for years, certain questions come up again and again. We’ve gathered the most common ones here, with honest answers that don’t shy away from the tradeoffs.
Q: At what age should I start collecting Social Security?
There’s no single right answer — it depends on your health, your other income sources, and whether you’re married. But as a general principle: if you can afford to wait past 62, you usually should. Benefits increase roughly 6–8% for every year you delay between 62 and 70. That’s a guaranteed return that’s hard to beat. The break-even point for most people who delay to 70 versus 62 is around age 80 — and many Ohioans live well past that.
Q: Are annuities safe?
Fixed and fixed-indexed annuities from highly-rated insurance carriers are generally considered safe money tools. They’re backed by the insurance company’s reserves, and each state has a guaranty association that provides a backup layer of protection (typically up to $250,000 or more depending on the state). They are not FDIC-insured like bank accounts, but high-quality carriers have strong track records.
Q: Do I need life insurance in retirement?
It depends on your situation. If your spouse depends on your income to pay the mortgage, if you want to leave money to children or grandchildren, or if you have outstanding debts, life insurance in retirement can make sense. If your assets are sufficient and your spouse is financially independent, the need is lower. Final expense insurance — a smaller, simpler policy — makes sense for most retirees regardless of other coverage.
Q: What’s the biggest mistake people make in retirement?
Underestimating healthcare costs, by a wide margin. Most retirees budget carefully for housing and food and travel — and then get blindsided by Medicare premiums, long-term care expenses, dental work, and prescription costs. A realistic retirement plan puts healthcare costs front and center, not as an afterthought.