Learn About Retirement Benefits

We want you lot to know what Social Security tin can mean for you and your family'due south financial futurity. In this section, you can acquire how Social Security works, who's 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 page:

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 choose to start benefits.

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

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

The money you lot pay in taxes isn't held in a personal account for you to use when you lot get benefits. We apply your taxes to pay people who are getting benefits right at present. Any unused coin goes to the Social Security trust fund that pays monthly benefits to y'all 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 plan and save for years to achieve your retirement goals. While many factors affect retirement planning, we want you lot to understand what Social Security can mean to you and your family'south financial future.

Social Security Should Be Just One Role of Your Retirement Plan

On average, retirement beneficiaries receive 40% of their pre-retirement income from Social Security. Every bit you make your retirement program, knowing the guess amount yous will receive in Social Security benefits tin can help you determine how much other retirement income you lot'll need to reach your goals.

Are You Eligible?

When you piece of work and pay Social Security taxes, you earn "credits" toward Social Security benefits. The number of credits you need to get retirement benefits depends on when you lot were born. If yous were built-in in 1929 or later, you need xl credits (usually, this is ten years of piece of work).

If you stop working before you have enough credits to qualify for benefits, the credits will remain on your Social Security record. If you return to piece of work later on, more credits may be added. We tin't pay whatever retirement benefits until you have forty credits. Visit our retirement benefits webpage for more than information on how Social Security Credits work.

Verify Your Earnings History

The amount of the Social Security benefits yous or your family receives depends on the amount of earnings shown on your tape. Regularly checking your Social Security earnings history can help ensure there are no surprises when it's time for you to start receiving benefits. You lot tin can find your earnings history with a personal my Social Security account. Create your account at present to cheque your earnings history online.

Guess Your Benefits

Knowing what you will become every month in retirement benefits will help you programme for your retirement. If you have a my Social Security account, you can get an gauge of your personalized retirement benefits and see the effects of unlike retirement historic period scenarios. If y'all don't take a personal my Social Security business relationship, create i at www.ssa.gov/myaccount or yous can apply our online Retirement Computer at www.ssa.gov/benefits/retirement/estimator.



Deciding When To Start Retirement Benefits

Choosing when to start receiving retirement benefits is a personal decision. If y'all choose to retire and begin receiving benefits when you lot attain your full retirement age, yous'll receive your total benefit amount. Nosotros volition reduce your benefit amount if yous make up one's mind to start benefits before reaching full retirement historic period.

To make an informed choice, consider the post-obit factors every bit you think well-nigh when to outset your Social Security benefits.

What Age Should You First To Receive Benefits?

The historic period you begin receiving your retirement benefit affects how much your monthly benefits will exist. There are three important things to know about age when thinking well-nigh when to beginning your benefits.

Full Retirement Age

Total retirement age is the historic period when you can showtime receiving your full retirement benefit amount. The total retirement historic period is 66 if y'all were built-in from 1943 to 1954. The full retirement age increases gradually if yous were born from 1955 to 1960, until it reaches 67. For anyone born 1960 or later, total retirement benefits are payable at age 67. You can detect your total retirement age past nascency year in the full retirement age nautical chart.

Early Retirement Age

You tin can go Social Security retirement benefits as early as age 62. However, we'll reduce your benefit if you start receiving benefits earlier your full retirement age. Visit our website to larn how claiming retirement benefits early on volition affect your benefit amount.

Delayed Retirement Age

When you lot delay benefits beyond your full retirement age, the corporeality of your retirement benefit will continue to increase upwardly until age lxx. There is no incentive to delay claiming after age lxx.



What Else Affects Your Retirement Benefits