Learn About Retirement Benefits

We desire y'all to know what Social Security tin mean for y'all and your family's fiscal hereafter. In this section, you can learn how Social Security works, who'due south eligible for retirement benefits, and what to consider earlier applying. Read on to empathize 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 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 kickoff benefits.

When you lot work, you pay taxes into Social Security. We use the tax money to pay benefits to:

  • People who have 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 you to use when you get benefits. We use your taxes to pay people who are getting benefits right now. Any unused coin goes to the Social Security trust fund that pays monthly benefits to y'all and your family when you showtime 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 accomplish your retirement goals. While many factors affect retirement planning, we want you to empathise what Social Security tin mean to you lot and your family'south financial future.

Social Security Should Be Just One Function of Your Retirement Plan

On average, retirement beneficiaries receive 40% of their pre-retirement income from Social Security. Equally y'all make your retirement plan, knowing the approximate amount you lot volition receive in Social Security benefits can assist you determine how much other retirement income you lot'll need to reach your goals.

Are You Eligible?

When you 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 yous were born. If you were born in 1929 or afterward, you lot need forty credits (usually, this is 10 years of piece of work).

If yous stop working before yous accept enough credits to qualify for benefits, the credits will remain on your Social Security tape. If you lot return to work afterward, more than credits may be added. We can't pay whatsoever retirement benefits until you lot have 40 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 you or your family receives depends on the amount of earnings shown on your tape. Regularly checking your Social Security earnings history can aid ensure there are no surprises when it's time for you to starting time receiving benefits. You can discover your earnings history with a personal my Social Security account. Create your account now to check your earnings history online.

Gauge Your Benefits

Knowing what you will get every month in retirement benefits will aid you lot programme for your retirement. If y'all have a my Social Security account, you lot can get an estimate of your personalized retirement benefits and come across the effects of unlike retirement age scenarios. If you don't have a personal my Social Security account, create i at world wide web.ssa.gov/myaccount or you can use our online Retirement Estimator at world wide web.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 y'all reach your total retirement age, you'll receive your full do good amount. We volition reduce your do good amount if you decide to offset benefits before reaching total retirement age.

To make an informed pick, consider the following factors as yous retrieve about when to start your Social Security benefits.

What Age Should You Start To Receive Benefits?

The age you lot begin receiving your retirement benefit affects how much your monthly benefits volition be. In that location are 3 important things to know most age when thinking near when to starting time your benefits.

Total Retirement Age

Full retirement age is the age when you lot can start receiving your full retirement benefit amount. The full retirement historic period is 66 if you were built-in 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 built-in 1960 or afterwards, full retirement benefits are payable at age 67. You can notice your full retirement age by nascence year in the full retirement age chart.

Early Retirement Historic period

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

Delayed Retirement Age

When you delay benefits beyond your full retirement age, the amount of your retirement benefit will go on to increase up until age 70. There is no incentive to delay claiming after age 70.



What Else Affects Your Retirement Benefits