Larn About Retirement Benefits

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

Jump to a topic on this page:

How Retirement Benefits Work / Planning For Retirement / Deciding When To Beginning 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 choose to start benefits.

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

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

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



Planning For Retirement

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

Social Security Should Exist Simply One Part of Your Retirement Plan

On boilerplate, retirement beneficiaries receive a portion of their pre-retirement income from Social Security. As you lot brand your retirement plan, knowing the approximate corporeality you volition receive in Social Security benefits can help you determine how much other retirement income you'll demand to reach your goals.

Are You Eligible?

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

If you lot finish working earlier you accept enough credits to qualify for benefits, the credits will remain on your Social Security record. If you return to work afterwards, more credits may be added. Nosotros can't pay whatsoever retirement benefits until yous take forty credits. Visit our retirement benefits webpage for more information on how Social Security Credits work.

Verify Your Earnings History

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

Estimate Your Benefits

Knowing what you will become every month in retirement benefits helps you plan for your retirement. If you have a personal my Social Security account, you can get an estimate of your personalized retirement benefits and see the effects of different retirement age scenarios. If you don't accept a personal my Social Security business relationship, create one at www.ssa.gov/myaccount.



Deciding When To Start Retirement Benefits

Choosing when to start receiving retirement benefits is a personal decision. If you cull to retire and begin receiving benefits when you reach your full retirement historic period, you'll receive your full benefit amount. We volition reduce your do good amount if you lot decide to start benefits before reaching total retirement historic period.

To brand an informed choice, consider the following factors as you call up nearly when to outset your Social Security benefits.

What Age Should You Start To Receive Benefits?

The age you begin receiving your retirement benefit affects how much your monthly benefits will be. At that place are iii important things to know almost age when thinking about when to start your benefits.

Full Retirement Age

Full retirement age is the historic period when you can start receiving your full retirement benefit amount. The full retirement age is 66 if you were born from 1943 to 1954. The total retirement historic period increases gradually if you were built-in from 1955 to 1960, until it reaches 67. For anyone born 1960 or after, total retirement benefits are payable at historic period 67. Yous tin can find your full retirement age past nativity twelvemonth in the full retirement age chart.

Early Retirement Historic period

You lot can get Social Security retirement benefits as early equally historic period 62. Yet, we'll reduce your do good if yous offset receiving benefits before your full retirement age. Visit our website to learn how claiming retirement benefits early on will impact your benefit amount.

Delayed Retirement Historic period

When y'all delay benefits beyond your full retirement age, the amount of your retirement do good will continue to increase up until historic period 70. There is no incentive to filibuster challenge after age 70.



What Else Affects Your Retirement Benefits