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Little Rock Office
1111 S. Bowman, Ste B-4
Little Rock, AR 72211
(501) 224-6666
(888) 214-3149
FAX (501) 224-0477

Conway Office
269 Hwy 65 North
Conway, AR 72032
(501) 327-4666
(888) 563-5656
FAX (501) 327-4684

Rogers Office
2894 W. Walnut Ave. Ste A
(479) 633-0505
(877) 633_0505
FAX (479) 633-9595

Sherwood Office
8210 Hwy 107 (JFK)
Sherwood, AR 72120
(501) 392-0300
(866) 861-8368
FAX (501) 392-0302

Click these links for more information about:

Term Life Insurance
Whole Life Insurance
Universal Life Insurance

Retirement Planning

Retirement Index
Retirement Strategies
Medicare Part A
Medicare Part B
Medicare Supplements
Annuities

January 2006 - New York Transit Workers Go On Strike.

Did you know that the transit workers and the City of New York agreed on every part of the contract except one -- retirement pensions? Did you notice something else that happened in January 2006? IBM announced that it had frozen its pension plan? Hewlett Packard, Verizon, and Motorola are just a few of the companies that beat IBM to the punch.

Corporate pensions are not the golden egg they once were. Of course you have Social Security. Do you know how your Social Security benefit is calculated?

How Your Social Security Benefit is Calculated

Your social security benefit is based upon your lifetime earnings. The Social Security Administration will take your highest 35 years of earnings and determine your average monthly income. Yes, they adjust your actual income for inflation so that your average monthly income is stated in today's dollars.

Example: Let's say your average monthly income is calculated to be $4,000.

You would receive 90% of the first $656, or $590.40. Then you would receive 32% of the amount between $656 and $3995 (32% of $3339), or an additional $1068.48. You would also receive 15% of your average monthly income in excess of $3995, in our example -- 15% of $5.00, or $.75.

So, based upon an average monthly income of $4,000, your Social Security monthly benefit would be $1659.63 at full retirement age.

Full Retirement benefits are based upon your year of birth. A short synopsis is presented here. If you were born during or before 1937, you're eligible for full benefits at age 65. Age 66 is full retirement age for persons born between 1943 and 1954. Age 67 is full retirement age for persons born in 1960 or later.

Don't Forget Medicare

You automatically qualify for Medicare Part A (hospital benefits). Your only cost is the copayment you must pay. For hospital stays of less than 60 days, the copay is $952.00 plus the cost of the first three pints of blood you receive, if any. Click here to read our 2006 Medicare Part A Synopsis.

Medicare Part B covers medical expenses. For 2006 the monthly premium is $88.50. Medicare pays 80% of approved medical care after you pay a $124 deductible. Click here to read our 2006 Medicare Part B Synopsis.

In other words, don't forget that you will have expenses to pay out of those Social Security Benefits. Check out our section about Long Term Care Insurance.

How McGhee Insurance Agency Can Help

There are numerous strategies you can use for more enjoyable retirement years. There are steps you can take now to plan for those lower income days. There are steps you can take as you near retirement to maximize benefits for your family. Click here for Retirement Planning Strategies.

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