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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Mila K.
I am planing for retirement in January 2019. Can I get 50% from my husband’s SSR (he is 67 years old) when I stop working at 66 years old and not apply for myself?
Mario C.
I wish to ask which laws applied to legal resident compare to citizens when it comes to deal with retirement. I also would like to know where can I find more Information on the subject or if you can provide it.
Debbie B.
My question is can I draw off my husband ? He is younger than I am and If not… if I draw now can I change when he retires
PRC
whatever you do do NOT use the Social security web site to file for your benefits! I applied for spousal benefits and my wife applied for her own benefits at age 62 – 6 months. I was filing at my full retirement age but am not planning to start drawing my social security until I turn 70. This was all to start in November 2017.
What they set us up for was for me to get my normal retirement (at age 66) and my wife to get hers and spousal benefits based on mine.
This still has not been corrected over three months later. They finally stopped paying me and benefits but keep paying my wife spousal benefits based on me social security. Looks like it will be MONTHS more before it gets corrected! Also I have to pay 2017 taxes on social security income that I will eventually have to return to them when they get this nightmare straightened out.
My advise is NOT TO USE their web site for filing for your benefits.
Debra V.
Do I receive my deceased husband’s benefits as well as my own when I apply
tony
Do we have to plan for the 22% cut to our Social Security check in 2034?
ANTHONY N.
My name is Anthony Nguyen. My SSN# *** – ** – ***. I just start earning my Social Security benefit, My question is: Why do I need to report whenever I go outside the USA for 30 consecutive days or longer ?
Thank you for answer my question, you can reply by my e-mail address or call me at 1-503-799-7250
Sincerely yours!
Anthony Nguyen
R.F.
Hello Anthony! We do not have access to personal information, therefore, we do not do direct messaging in this venue.
If you receive benefits from Social Security, you have a legal obligation to report changes, which could affect your eligibility for disability, retirement, and Supplemental Security Income (SSI) benefits.
We recommend that individuals living outside the United States contact their local U.S. embassy or consulate for any assistance related to Social Security programs and benefits. Also, our Office of International Operations home page provides more information to assist our customers living abroad.
Just a reminder – Please be cautious about posting personal information on social media and communicating personal information via email, thanks.
ANTHONY N.
My name is Anthony Nguyen, my SSN# *** – ** – ***. I just start earning my social security benefit, My question is: why do i need to report your office whenever I go outside the USA for 30 consecutive days or longer?
Thank you for answer my question.
Sincerely yours!
Anthony Nguyen
Vida
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Urja
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