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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Susan
I’m still confused about what I’ll get when I retire at 62 or if and when my husband ever passes away what I would get it’s not clear on line in layman terms for me to understand this…sorry.
Right now I just turned 59 I get disability benefits of 900… my first question is when I’m 62 well I get retirement benefits also along with my disability benefit?
My husband will be 70 this year. God forbid, but If & when he passes away well I keep my disability/retirement and also get his benefit or will they deduct my disability/retirement from his check his check is double mine right now. Also his Social Security Retiremant check is taxed… well I continue to be taxed when it comes over to me as a Widowers benefit? I hope you can revamp your site to explain this part of it a little clearer. Thank you for listening have a great day ?
Ray F.
Hello, Susan. First, the earliest age a person can apply for reduced retirement benefits is 62. Age 62 is -also- the age in which you may be able to get spouse’s retirement benefits, if your spouse is already receiving retirement benefits. You will have to check with us to see if you qualify for a higher -monthly- benefit amount at that time.
Second, Social Security disability benefits automatically change to retirement benefits when disability beneficiaries attain their full retirement age. The benefit amount remains the same.
Generally survivor’s benefits are paid at a higher rate, and a disabled widow can start receiving benefits at age 50 or older. However, if you already receive benefits, on your own record, you can only apply for benefits as a widow if the benefit you receive is less than the benefits you would receive as a survivor. You will also need to contact a Social Security claims representative about your options.
It is possible for a person to be eligible to more than one benefit at the same time. However, we are only going to pay the highest benefit amount from either records – meaning that you will only be allowed to receive one payment.
Finally, some people have to pay federal income taxes on their Social Security benefits. This usually happens only if you have other substantial income (such as wages, self-employment, and other taxable income that must be reported on your tax return) in addition to your Social Security benefits. For further income tax questions, you will need to contact the IRS. Their toll-free number is 1-800-829-1040. We hope this information provides some clarity. Thanks!
Aldo
Thanks for this site really certainly will help me and others in the process,it feels secure(?) simple and easy to read very helpful
Thanks again
Darlene A.
I already retired at 57 years of age I am now 60 years of age!
Gulshad k.
I think I have missed all the company that I worked for in my disability form. How do I fix that?
Frances
How do I avoid paying the government on the roth and ira accounts when I take them out?
Tommy M.
How do i find out how much i can draw
Ray F.
Hello Tommy, our Retirement Estimator gives estimates of monthly Social Security benefits based on your actual Social Security earnings record.
We have a variety of calculators to help you plan for the future. Which calculator you choose depends on what you want to do. Also, you can create a my Social Security account online. With your personal my Social Security account, you can verify your earnings, get your Social Security Statement, and much more.
In April we celebrate “National Social Security Month“, see what you can do online at http://www.SocialSecurity.gov. Thanks!
Jim J.
My BD is 09/17/1956.
When , may I apply at age 62. Com we apply on line?
Thank you.
Jim young
Ray F.
Hello Jim, our system is set up to take applications three months in advance, and yes, you can apply for your benefits online!
Remember, you have to be of age (62) a full month, and that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of October, you will receive your first benefit payment in November. Please visit our Social Security Retirement Planner for more information.
In April we celebrate “National Social Security Month“, see what you can do online at http://www.SocialSecurity.gov. Thanks!
Pamela R.
I am divorced was married more than 30 years. He was in the Army. Can i collect his SS? How do i find out his amount vs. Mine?
Iris M.
I lost my social security card
Ray F.
Hi Iris, we prefer a government issued document with your picture, as proof of identity to replace your Social Security card. If you do not have one or you cannot get one within a reasonable amount of time, we may be able to use other documents such as:
•Employee identification card;
•School identification card;
•Health insurance card; or
•U.S. military identification card.
Any document you submit, must be an original or certified copy, current (not expired) and show your name, and other identifying information (date of birth or age).
Also, realize that you may not need a replacement card. You will rarely need to show it. Knowing your Social Security number is what is important.
To see if you’re eligible to apply for a replacement Social Security card online or to learn more on the process and what documents you will need to get a card, please visit our “Social Security Number and Card” web page. When ready, you can take or mail your application with your documents to the local Social Security office or the nearest Card Center in your area. Any documents you submit with your application will be returned to you. We hope this information helps!
Iris M.
I eill like to receive my social security card by mail