Larn About Retirement Benefits

We want you to know what Social Security can mean for you and your family's fiscal hereafter. In this section, you tin can larn how Social Security works, who'due south eligible for retirement benefits, and what to consider before applying. Read on to understand how Social Security fits into your retirement program.

Spring to a topic on this folio:

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



How Retirement Benefits Piece of work

Social Security replaces a percentage 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 cull to start benefits.

When you lot work, you pay taxes into Social Security. Nosotros use the tax 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 you pay in taxes isn't held in a personal account for yous to utilise when you get benefits. We use your taxes to pay people who are getting benefits right now. Whatsoever 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 all-time retirement. Y'all'll need to plan and save for years to achieve your retirement goals. While many factors touch on retirement planning, nosotros want you lot to sympathize what Social Security tin mean to you and your family unit'due south fiscal future.

Social Security Should Be Only I Part of Your Retirement Plan

On average, retirement beneficiaries receive xl% of their pre-retirement income from Social Security. As you make your retirement plan, knowing the approximate amount you will receive in Social Security benefits can assist y'all determine how much other retirement income y'all'll need to reach your goals.

Are You Eligible?

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

If you lot finish working earlier y'all have enough credits to qualify for benefits, the credits will remain on your Social Security tape. If you return to piece of work after, more credits may be added. We can't pay any retirement benefits until you have 40 credits. Visit our retirement benefits webpage for more data on how Social Security Credits work.

Verify Your Earnings History

The amount of the Social Security benefits you or your family unit receives depends on the amount of earnings shown on your record. Regularly checking your Social Security earnings history can help ensure there are no surprises when it'due south fourth dimension for you to start receiving benefits. You lot tin can observe your earnings history with a personal my Social Security account. Create your account now to check your earnings history online.

Judge Your Benefits

Knowing what you lot will get every month in retirement benefits will help you programme for your retirement. If you lot have a my Social Security account, you lot tin can get an estimate of your personalized retirement benefits and encounter the effects of dissimilar retirement age scenarios. If you don't have a personal my Social Security account, create i at www.ssa.gov/myaccount or you lot can use our online Retirement Figurer at www.ssa.gov/benefits/retirement/estimator.



Deciding When To Start Retirement Benefits

Choosing when to kickoff receiving retirement benefits is a personal conclusion. If y'all cull to retire and begin receiving benefits when you achieve your full retirement historic period, you'll receive your total benefit amount. Nosotros will reduce your benefit amount if yous decide to start benefits before reaching full retirement age.

To make an informed choice, consider the following factors as you call back virtually when to start your Social Security benefits.

What Age Should You Start To Receive Benefits?

The age you lot begin receiving your retirement do good affects how much your monthly benefits will be. There are three important things to know well-nigh age when thinking nearly when to start your benefits.

Full Retirement Historic period

Full retirement age is the age when y'all tin start receiving your full retirement benefit corporeality. The total retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were built-in from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67. You tin find your full retirement age by birth year in the full retirement age nautical chart.

Early on Retirement Age

You lot can get Social Security retirement benefits equally early on as age 62. Yet, we'll reduce your do good if you first receiving benefits before your total retirement age. Visit our website to learn how claiming retirement benefits early will bear on your benefit corporeality.

Delayed Retirement Age

When you filibuster benefits beyond your full retirement age, the amount of your retirement do good will continue to increment upward until age 70. In that location is no incentive to delay claiming later on age 70.



What Else Affects Your Retirement Benefits