Many companies have done away with pensions. Unfortunately, many individuals do not have the means to save for their retirement or they have not planned ahead and are now faced with the question of when to claim social security.
In retirement, many individuals main source of guaranteed income is Social Security. To help you plan for what works best for your personal situation, sign up for a My Social Security account. Go to the Social Security Administration’s website (ssa.gov/myaccount) to set it up.
Once logged in, you will be able to view your individual benefits. Your benefits are based upon your work record and the age you will begin to claim benefits. Keep in mind that although those numbers are based upon the current dollar value, over time modifications may be made to keep up with inflation.
By finding out your approximate benefit now, you will be able to plan better for a secure retirement. The guide from the Social Security website will help you to determine the best time to start taking your benefits. Your estimated monthly benefit payments will change depending on your age. While everyone is eligible to begin taking benefits at the age of 62, your monthly benefit will be reduced. Your monthly benefit will increase each month you delay claiming your benefits up to age 70.
Married couples will also need to consider how the benefits change after one spouse dies. The remaining spouse will receive only one monthly benefit not both: the higher of their present benefit and the survivor’s benefit.
It’s never too early to begin thinking about retirement. Sign up today on the Social Security Administration’s website to get a picture of what your retirement benefits could look like.
Here is a handy retirement calculator to help estimate how much to save each to accumulate enough money for your projected retirement.
