Do you imagine that Social Security is like a security blanket that will protect you during your retirement? If you’re relying on Social Security to pick up the slack between what you’ve saved and what you’ll need, you could be putting your financial future at risk.
Unless you’re close to retirement, you don’t know for sure exactly how much you will receive from Social Security. You can use the Retirement Estimator on the Social Security Administration’s website (www.ssa.gov) to get a projection of your future Social Security retirement benefits. Keep in mind, however, that this is just an estimate of your benefits.
Current retirees, on average, received an estimated $1,360 a month from Social Security in January 2017.* That adds up to about $16,320 a year. Compare that amount to your current income and the amount you anticipate needing in retirement.
When To Retire
When you retire affects how much you will receive from Social Security. Your “full retirement age” is the age at which you will be eligible to start receiving full (unreduced) Social Security benefits. It’s based on the year in which you were born. If you were born in 1960 or later, your full retirement age is 67. Full retirement age ranges from 66 to 66 and 10 months for individuals born during the 1950s.
The earliest you can start collecting benefits is age 62, but taking Social Security before your full retirement age means your monthly benefit will be reduced. If you delay taking benefits past your full retirement age, your benefit will increase by a certain percentage each year until you reach age 70.
The right time for you to start receiving benefits depends on your personal circumstances. Consider your financial needs, health, and other sources of retirement income before deciding when to start taking Social Security.
A Source of Income
Your employer’s retirement plan can be a source of income during retirement. If there’s a big difference between what you expect to receive from Social Security and the retirement income you anticipate needing, consider saving as much as possible.
* Fact Sheet: 2017 Social Security Changes, Social Security Administration, 2016
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This publication is designed to provide useful information about retirement plans and investing your plan account savings. While the information contained herein was obtained from reliable sources, it cannot be guaranteed as to completeness or accuracy. Before acting on any of the information provided, consult your professional advisor.
FR2017-0106-0032/E ©2017 by DST