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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MARILYN G.
This information is very helpful. I currently am collecting survivor benefits. I will be 70 in October and retiring 1/4/2019. How do I change over to my own social security benefits and when? And how much will my benefit be?
R.F.
Hello Marilyn. 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 October, you will receive your first benefit payment in November. Also, keep in mind that the benefit increase no longer applies when you reach age 70, even if you continue to delay taking benefits.
Please visit our Social Security Retirement Planner for more information. Thanks!
anita p.
How much fee need to pay for perminent resident card
R.F.
Hello Anita, please visit the Official website of the Department of Homeland Security for information on that topic. Thanks!
Stephanie A.
I put down the wrong cell phone number on my online retirement benefits application that your office recieved on 06/11/18. My new phone number is 774-487-6499.
Karla J.
How much money am I allowed to earn without losing my social security benefits
Inja N.
May I get an appointment in person to calculate retirement planner?
Almenis G.
good morning,
What forms do I need to have taxes deducted from my monthly social security?
SUSAN G.
My husband is so afraid of retirement. What can you tell me to help him?
James J.
At 62.5 how much can i earn before I am penalyed? How are workman’s comp wages counted?
R.F.
Hello James, you can still work and receive your Social Security retirement benefits at the same time. However, if you are younger than full retirement age and make more than the yearly earnings limit, this can reduce the number of payments you receive through the year. For 2018 that limit is $17,040. To learn more, please visit our Frequently Asked Questions web page.
If you receive disability benefits or SSDI, we have special rules to help you get back to work without jeopardizing your initial benefits. For more Information click here. Also, workers’ compensation or public disability benefit payments, may reduce your Social Security disability benefits.
Please call our toll free number at 1-800-772-1213 and speak to one of our agents for further assistance. Representatives are available Monday through Friday, between 7 a.m. and 7 p.m. We hope this information helps!
Julia K.
I tried twice to log in. It then booted me out and said I’d tried 3 times. Not sure why when it was only twice. Now wait 24 hours. End of story?! Frustrating.
R.F.
Hi Julia, we’re sorry that you had difficulty accessing your account. For assistance call our dedicated my Social Security-Hotline. To reach this hotline, call 1-800-772-1213 (TTY 1-800-325-0778), Monday through Friday from 7 a.m. to 7 p.m. At the voice prompt, say “helpdesk”. Sometimes is best to contact your local Social Security office. Thanks!
Vickie r.
Like to see what I can get if retire at 62
R.F.
Hi Vickie, our Retirement Estimator is exactly the calculator you are looking for! It gives you future estimates of your monthly Social Security benefits based on your actual Social Security earnings record.
In addition, we have a variety of other calculators to help you plan for the future. Which calculator you choose depends on what you want to do. Also, 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!