Learn About Retirement Benefits

We desire you to know what Social Security tin mean for you and your family's financial time to come. In this department, you can learn how Social Security works, who'south eligible for retirement benefits, and what to consider before applying. Read on to understand how Social Security fits into your retirement plan.

Spring to a topic on this folio:

How Retirement Benefits Work / Planning For Retirement / Deciding When To Starting time Retirement Benefits / What Else Affects Your Retirement Benefits



How Retirement Benefits Piece of work

Social Security replaces a pct of your pre-retirement income based on their lifetime earnings. The portion of your pre-retirement wages that Social Security replaces is based on your highest 35 years of earnings and varies depending on how much you earn and when you choose to start benefits.

When you work, you pay taxes into Social Security. We use the taxation money to pay benefits to:

  • People who have already retired.
  • People who are disabled.
  • Survivors of workers who have died.
  • Dependents of beneficiaries.

The money yous pay in taxes isn't held in a personal account for you to use when you lot get benefits. Nosotros use your taxes to pay people who are getting benefits correct now. Any unused money goes to the Social Security trust fund that pays monthly benefits to you and your family when you start receiving retirement benefits.



Planning For Retirement

Planning is the key to creating your best retirement. You'll need to programme and save for years to achieve your retirement goals. While many factors affect retirement planning, nosotros want you to understand what Social Security can mean to you lot and your family unit's financial future.

Social Security Should Be Simply Ane Part of Your Retirement Plan

On average, retirement beneficiaries receive 40% of their pre-retirement income from Social Security. Equally y'all make your retirement plan, knowing the estimate amount you will receive in Social Security benefits can help you make up one's mind how much other retirement income you'll need to reach your goals.

Are You Eligible?

When yous work and pay Social Security taxes, you earn "credits" toward Social Security benefits. The number of credits you need to become retirement benefits depends on when you were built-in. If y'all were born in 1929 or later, you demand 40 credits (unremarkably, this is 10 years of work).

If you stop working earlier you have enough credits to qualify for benefits, the credits will remain on your Social Security tape. If you return to work afterwards, more credits may exist added. We can't pay any retirement benefits until you have 40 credits. Visit our retirement benefits webpage for more than information on how Social Security Credits work.

Verify Your Earnings History

The corporeality of the Social Security benefits yous or your family unit receives depends on the amount of earnings shown on your record. Regularly checking your Social Security earnings history tin can help ensure there are no surprises when information technology's time for y'all to starting time receiving benefits. You can find your earnings history with a personal my Social Security account. Create your business relationship now to check your earnings history online.

Estimate Your Benefits

Knowing what you volition get every month in retirement benefits will aid yous plan for your retirement. If you have a my Social Security account, you can become an estimate of your personalized retirement benefits and run across the effects of unlike retirement age scenarios. If you don't have a personal my Social Security account, create one at www.ssa.gov/myaccount or you tin can use our online Retirement Estimator at www.ssa.gov/benefits/retirement/estimator.



Deciding When To Commencement Retirement Benefits

Choosing when to get-go receiving retirement benefits is a personal decision. If you choose to retire and begin receiving benefits when yous accomplish your full retirement age, you'll receive your full benefit amount. We will reduce your benefit corporeality if you make up one's mind to start benefits before reaching full retirement age.

To make an informed selection, consider the following factors every bit you think well-nigh when to get-go your Social Security benefits.

What Age Should You Start To Receive Benefits?

The age yous brainstorm receiving your retirement do good affects how much your monthly benefits will be. There are three important things to know nigh age when thinking about when to starting time your benefits.

Full Retirement Age

Full retirement age is the age when you can start receiving your full retirement do good amount. The full retirement age is 66 if y'all were born from 1943 to 1954. The total retirement age increases gradually if you were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at historic period 67. Yous can find your full retirement age by nascence year in the full retirement age chart.

Early Retirement Historic period

Y'all can go Social Security retirement benefits as early every bit age 62. Even so, we'll reduce your benefit if y'all start receiving benefits before your full retirement age. Visit our website to acquire how claiming retirement benefits early will bear upon your benefit corporeality.

Delayed Retirement Historic period

When yous filibuster benefits across your total retirement age, the amount of your retirement do good volition go on to increase up until age 70. At that place is no incentive to delay claiming later age 70.



What Else Affects Your Retirement Benefits