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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XIAOYI G.
Can I apply for the retirement benefits of social security from an embassy of oversea?
Ray F.
Hello Xiaoyi. Even though you still need a U.S. address to register for a my Social Security account, you do not need a U.S. address to access our website or to file for benefits.
Our system is set up to take applications three months in advance. When ready you can apply for your benefits online. Remember that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of April, you will receive your first benefit payment in May. Please visit our Social Security Retirement Planner for more information.
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. Thanks!
Joey P.
Social Security is the most confusing program ever. Not even those, who work at the social security, know the answer of the simplest question. If you think that I’m lying, do this simple experiment. Call the 800# and then call your local social security office and ask the very same question and you will get 2 different answers. In spite all the wonderful feel-good speeches coming from Social Security about benefits, Social Security’s mission is to discourage people to get benefits.
While social security benefits can be a great help for million of people, but social security can also be somebody’s worse NIGHTMARE. There is what’s called “OVERPAYMENT” and once you get the first letter from Social Security telling you that you have an overpayment, it is the beginning of your nightmare. Overpayment is inevitable. According to many reports, 85% of social security recipients have an overpayment and social security target especially low-income and those who rely solely on their social security checks to live on. When you have an overpayment, social can take your entire check or a big chunk out of your check, garnish your wages, or take your tax refund toward the overpayment. Social Security doesn’t care if you rely on the check to pay your rent or buy food. When you have an overpayment, social security will treat you like a common criminal, will harass you, will torments you, and cause you a nervous break down.
Be happy when you get your first social security check, go out and celebrate, but be ready for the nightmare of your life as well. Good luck to all!
Charles R.
I was born 12/15/1952 and I am still working , but it is overseas. at what can I collect full retirement without fear of having my retirement check redused if I continue to work?
Robert L.
what is the monthly amount difference between the ages of 62 and 67 for retirement
luis f.
hola buenas noches …………….yo no hablo ingles ……..
pero quiero saber……….yo aplique por benficios en febrero de este año……….y ha este momento no me consignan ….o me pagan mis beneficios……
mi nombre… luis f candamil villegas..
mi social…*** – ** – ***
mi direccion …1329 caey glen cir..orlando florida..
yo sali de vacaciones …y por este motivo no lo he podido hacer personalmente…..
atte luis f candamil
Betty L.
How do I get taxes taken out
Joe W.
After the age of 66, do I get prorated credit for working past my retirement age if it’s less than a full year. For example, if I retire at 66 1/2 do I get credit for that half year toward my benefit?
Cynthia C.
I had a colonoscopy about a month ago. I’m still under my husbands insurance through his job and I also have my Medicare A card. Medicare paid nothing towards this medical procedure. It was a preventative procedure as my father died from colon cancer. I thought that as long as I had a primary insurance such as my husbands and Medicare was my secondary that I would be covered by Medicare, but nope….nothing!!! My question is: What does this one card do for me if anything?
nancy j.
How soon do I need to start the process ?
Lorna N.
I’m suppose to start receiving my SS money this September. I’ll be 66. Do I need to do anything between now and September?
Ray F.
Hi Lorna, everybody must “officially” apply for their Social Security benefits.
Our system is set up to take applications three months in advance to when you want your benefits to begin. When ready, you can apply for your benefits online. Remember that benefits are paid the month after they are due. So, for instance, if you want your benefits to begin with the month of September, you will receive your first benefit payment in October.
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!