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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Scott
Both my wife and I plan to retire at age 65 in one year. What options do we have to maximize our combined social security benefit if we retire at the same time?
R.F.
Please bear in mind that the decision on when to apply for benefits is a personal one. We can only provide you with the information to help you make the best choice according to your own situation. To see what factors may affect your retirement benefits visit our Retirement Planner.
To learn more about Social Security spouse’s benefits and your own retirement benefits click here.
Also, see the information on the recent Claiming Changes, Deemed Filing, and Voluntary Suspense.
In April we celebrate “National Social Security Month”, see what you can do online at http://www.SocialSecurity.gov. Thanks!
Andrea B.
My x husband of 30 years is now collecting ss and I have my own. I was told by ss employee that he makes more than I do and I might benefit to get part of his. Please inform.. I have his SS # if you need it. Thank you.
R.F.
Hello Andrea. Generally, if you qualify to receive benefits on your own record, we pay that amount first. If the benefit on your ex-spouse’s record is higher, you will get an additional amount so that the combination of benefits equals that higher amount.
Unfortunately, and because of security reasons we do not have access to personal records in this blog and cannot assist you.
To see if you’re eligible for a higher benefit mount on your ex-spouse’s record you will need to speak with one of our representatives. Please call our toll free number at 1-800-772-1213, Monday through Friday, between 7 a.m. and 7 p.m. Thanks!
Merrilee H.
Is it safe to apply for SS on my iPad?
Merrilee H.
Is it safe for me to apply for SS on my iPad?
Christina M.
Can I receive benefits from my husband or ex-husband?
Carla C.
Please change current email to email address below.
Carla C.
I just wanted future notifications to go to this email address.
Al M.
I have a question about married couples and Social Security. If I collect at age 62. Does my wife need to be a certain age before she collects? Can she collect at 65? It still not her full retirement age.
Thanks
Robert T.
On SSI Disability, I need help with medicine can I get Medicaid to help me.
Robert T.
I am on SSI Disability, I have not had my medicine over a year, I have Huntington, medicine cost $6,00.00 a month. Can I get on Medicaid, to help me.
R.F.
Hi Robert. You may be eligible to receive additional assistance from the state where you 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. You can also visit the U. S. Department of Health and Human Services (HHS) web page for more information. We hope this information helps.