Retirement

4 Questions to Ask Yourself as You Plan for Retirement

January 25, 2018 • By

Reading Time: 3 Minutes

Last Updated: November 3, 2023

woman sitting at desk looking at computer 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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About the Author

Jim Borland, Acting Deputy Commissioner for Communications

Jim Borland, Acting Deputy Commissioner for Communications

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Comments

  1. Marie O.

    I have attempted several times ro talk to someone in person by phone.I have been on hold as long as two hours and then gave up and hung up the phone.
    What do you recommend ? I have several questions
    that are uncommon,therefore an social security advisor is
    needed.Help please!

    • R.F.

      We are sorry to hear that you are having difficulty reaching us, Marie. Our phone lines are busiest early in the week and early in the month. When calling, you will generally have a shorter wait time if you call later in the day or later in the week. Representatives at our toll free number 1-800-772-1213 are available Monday through Friday, between 7 a.m. and 7 p.m. You can try to make an appointment with your local Social Security office if necessary.
      The Social Security Administration is committed to keeping the public informed about Social Security programs and the services we offer. Our goal is to provide helpful information to as many people as possible. Through our Blog and Facebook page, we respond to questions and provide general information on our Retirement, Survivors, Disability, Medicare and SSI programs. We ask that you do not post your personal information in social media channels. Thanks!

  2. Neri L.

    Can I get social security benefits even if my social
    Security is for work only

    • R.F.

      Thank you for your question, Neri. Generally, you need to have immigration lawful status to receive Social Security benefits. You may qualify for retirement benefits if you have the number of “credits” required. You can receive your benefits while in the United States and perhaps even if you move abroad. See our Frequently Asked Questions web page titled “Noncitizens“.

  3. elsie f.

    I need information on retirement

  4. nancy l.

    I cant remember my password and you don’t mail yearly statements so I cant see what I will get at 66

  5. Catherine A.

    I am not sure how many quarters I have and need to know how I find out? I can not find the number in my account, if I have enough I would like to retire.

  6. Judy j.

    My late husband born 8/9/1958 died in 2008… when can I retire by claiming on his Social Security? I am 57

    • R.F.

      Hello Judy. A widow of a person who worked long enough under Social Security can receive reduced benefits as early as age 60 (age 50 if disabled). Thanks!

  7. Xavier A.

    My name is Xavier Pino with SS *** – ** – *** but currently living and working in Ecuador. So far I have 25 credits, how can accumulate the rest of my credits to be able to retire some day.
    How can I contribute to the SS from Ecuador in order to gain my benefits.
    Please help me with a solution, I’ll be very grateful
    Xavier Pino

    • R.F.

      Hello Xavier. Generally, you will need to have 40 credits, or 10 years of work paying Social Security taxes, to qualify for any type of Social Security benefit. Read our publication, “How You Earn Credits” for more information.
      Just a reminder – Please be cautious about posting personal information on any social media channels. Thanks!

  8. Betty M.

    I turn 66 June 9th. I am thinking about claiming by benefit then. Can you tell me how much it will be? I live in Lancaster Wis can I get an appointment at that office to talk to someone?

    • R.F.

      Hi Betty, 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. We suggest that you create a my Social Security account. With your personal my Social Security account, you can verify your earnings, get your Social Security Statement, and much more. Happy planning!

  9. Marilyn G.

    Can I retire at 66 (born 1952) take 1/2 of my retired husbands SS then switch over to my full SS at 70?

  10. Khorae O.

    I really like how you talked about planning for your retirement financially by looking into all your expenses. My dad wants to retire soon and I’m worried he might not be planning very well for it, like making sure he’s prepared to pay for healthcare and debts he still has. Thank you for the information about anticipating things like personal care and providing for the family, and even hobbies. I hope he will take your advice. https://www.raymondjames.com/rapids/services/services/retirement-planning

Comments are closed.