Social Security Payments can help you during your retirement but they are not the same as your pre-retirement income.
According to their official report, if your salary is in line with a salary of an average American worker, you will get around 40% of it.
Therefore, if you only rely on Social Security Payments during your retirement, you may not be able to live life to its fullest.
When Can I start Receiving Benefits?
You can start receiving benefits when you turn 62. You can also start receiving them later as it will increase the amount of money you will get:
- at age 62, you will get around 35% of your monthly benefit;
- at age 65, you will get around 49% of your monthly benefit.
You can also start receiving benefits as a spouse and you will get 50% of what your spouse would get. If your spouse dies, you should inform SSA about it in order to claim benefits. However, you can also wait up until age 70, and your benefit would be over 76% which is the maximum that you can get.
Should You Take Benefits At 62?
Sometimes, it is worth it to take benefits early. It is smart to take them at 62 if you are not expected to live to the life expectancy of your age group.
Of course, thinking about your longevity is not easy, but it is the only way you can decide whether or not take benefits at 62.
For example, 60-years-old males and females are expected to live till 90, but not everyone can make it to the nineties.
Therefore, it really makes sense to claim benefits early if you do not expect to live to your early eighties.
When Should I Plan for My Retirement?
A lot depends on your age. If you are currently receiving Social Security Benefits or plan on starting receiving them the next three or five years, then chances are it is still a good idea to speak to a professional about the retirement plan, as far as SSA income is incorporated into your overall retirement plan.
However, if you are like millions of other people who are many decades away from being able to take benefits, then you definitely need to start planning as soon as possible.
Although financial situation of every individual is totally different, it is better not to rely on Social Security benefits and Medicare. They will not be able to cover all hobbies, traveling and other activities that many people plan to have during the retirement. Of course, it will be enough to have an OK retirement, but no more than that.
Here’s What To Do Now
At Calvert Investment Counsel, we encourage you to think about your hobbies, dreams and goals in advance and our specialist will take a look at your financial situation.
Then we will analyze it based on your plans for the future. Remember that planning for future is the key to realizing all your goals and dreams while also preparing for the unexpected.
Click here to contact us to schedule a convenient time to speak with a professional.