4 Questions to Ask Yourself as You Plan for Retirement
Reading Time: 3 MinutesLast Updated: November 3, 2023
Deciding when to start receiving your retirement benefits from Social Security is a decision that only you can make, and you should make that decision with as much information as possible. There are a lot of important questions to answer.
Should you claim benefits earlier and get a smaller monthly payment for more years? Or should you wait and get a bigger monthly amount over a shorter period?
There are no right or wrong answers, but we encourage you to consider these four important questions as you plan for your financially secure retirement:
How much money will I need to live comfortably in retirement?
Anticipate what your expenses will be in retirement, including things like mortgage payments or rent, utilities, healthcare insurance and related costs, food, personal care, car payments and maintenance, entertainment, hobbies, travel, and credit card or other debt. Also, consider whether you’ll need to provide for your spouse, children, or grandchildren.
What will my monthly Social Security retirement benefit be?
The average monthly Social Security benefit for a retired worker in 2018 is $1,404 (up from $1,377 in 2017). The average monthly Social Security benefit for a disabled worker in 2018 is $1,197 (up from $1,173 in 2017). As a reminder, eligibility for retirement benefits still requires 40 credits (usually about 10 years of work). The Social Security Act details how the annual Cost of Living Adjustment (COLA) is calculated. You can read more about the COLA on our website. The best way to get an estimate of your retirement benefit is with a personal my Social Security account. Get yours today.
Will I have other income to supplement my Social Security benefits?
Secure your financial future with a retirement portfolio that includes savings, investments, and possibly a pension plan. If you’re willing and able, you may choose to increase your income by working past retirement age. Social Security replaces a percentage of a worker’s pre-retirement income based on your lifetime earnings. The amount of your average wages that Social Security retirement benefits replaces varies depending on your earnings and when you choose to start benefits. If you start benefits at age 67, this percentage ranges from as much as 75 percent for very low earners, to about 40 percent for medium earners, to about 27 percent for high earners. If you start benefits after age 67, these percentages would be higher. If you start benefits earlier, these percentages would be lower. Most financial advisers say you will need about 70 percent of pre-retirement income to live comfortably in retirement, including your Social Security benefits, investments, and other savings.
How long do I expect my retirement to last?
Anticipate the length of your retirement, keeping in mind that many American workers will live much longer than the “average” retiree. Consider your health, family longevity, and lifestyle. Your Social Security retirement benefits will provide continuous income for as long as you live, protecting you even if your other sources of income run out. Discover your life expectancy with our online calculator.
No one can predict the future perfectly, but careful planning and preparation will help you to make a well-informed decision about when to start receiving your Social Security benefits.
If you’ve contributed enough to the Social Security system through FICA payroll taxes, you can receive your full retirement benefit at age 66 or 67 depending on when you were born. You may also claim it sooner, starting at age 62, at a permanently reduced rate. Or you may wait until after your full retirement age, increasing your benefit amount by up to 8 percent per full year to age 70.
Social Security is with you through life’s journey, and we’re here to help you prepare for a financially secure future for you and your family. We invite you to use our online retirement planners.
To learn more about all of our programs, please visit us.
Join us on Facebook Live with USAgov on 1/30 at 7 P.M. ET as we chat about retirement.
Note: The closed captioned version will be available within one week after the broadcast.
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Tags: retirement, retirement benefits, Social Security benefits
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Jim Borland, Acting Deputy Commissioner for Communications
Jim Borland, Acting Deputy Commissioner for Communications
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Neal C.
Why is what being said on this site end up on facebook for the whole web. You need better safe grauds on this site. So now I see this is not for the people at all. This is a joke.
Neal C.
If I am below what you call the average. How can I make extra money to help myself.
MARYLOU M.
When I switch over to retirement social security from disability,will I be allowed to work?
Ray F.
Thank you for your question Elena. Yes, you will be allowed to work.
Keep in mind that if you’re receiving disability benefits under the Social Security Disability Insurance (SSDI) program, those benefits automatically convert to retirement benefits when you attain your full retirement age. If you work and are full retirement age or older, the amount you make at work will not affect your Social Security benefits, no matter how much you earn.
You can return to work while receiving disability benefits. We have special rules to help you get back to work without jeopardizing your disability benefits. However, your earnings cannot exceed a certain amount. This is called the Substantial Gainful Activity (SGA) limit. In 2018, the SGA limit is $1,180 per month (or $1,970 for blind applicants). In addition to the amount of money you make, Social Security may also look at the number of hours you’re able to work. We hope this information helps.
Tova
I’ll be 62 this year. My husband wants me to sign up on his SS. I will only be getting a little over $500.00 a month. ????, If I out live him, will I get a raise on my SS?
Sonya
Do I need to have a Facebook account in order to attend this live event?
Rebecca G.
Social Security told me that if you have prescription coverage with your company then don’t get part B, but when I plan to retire from work i’ll get the part B.
Cecilia G.
I will be 65 this year. My full retirement is 66. If I wait until next year can I file benefits under my husband’s social security and postpone drawing off mine.
Ray F.
Hi Cecilia, if you were born before January 2, 1954 and apply for benefits when you reach your full retirement age, you can choose to receive only the spouse’s benefit and delay receiving your retirement benefit until a later date. If your birthday is January 2, 1954 or later, the option to take only one benefit at full retirement age no longer exists. If you file for one benefit, you will be effectively filing for all retirement or spousal benefits.
See our Retirement Planner: Benefits For You As A Spouse for more information.
Martha S.
Most people need to plan far ahead for retirement because even with 2 good long careers a retired couple needs much more than SS to keep a good income flow!
Neal C.
Need more money to keep up with cost of living in these times.
Ray F.
Some individuals may be eligible to receive social services from the state in which they live. These services include Medicaid, free meals, housekeeping help, transportation or help with other problems. You can get information about services in your area from your state or local social services office.
Or you can visit the U. S. Department of Health and Human Services (HHS) web page for more information. We hope this helps!
Neal C.
What can I to help me make ends meet. I need exart money to feed myself with food ppl f2f ices going up.