Social security as a source of income for retirees
Your first source of income during the retirement period is Social Security; it is the US government’s social insurance plan that pays monthly benefits to any retirees. All workers who earn enough credits (after working) are entitled to get Social Security benefits during their retirement. Most people mistakenly believe that they’ll begin receiving Social Security benefits when they turn 65.
As a matter of fact, although those born after 1937, can get full Social Security benefits (also known as the normal retirement age) when they are at least a couple months after their 65th birthday, those who born after 1960 will not be eligible for complete Social Security benefits until they reach 67.
You may choose to get reduced benefits when you reach 62 (although you were born after 1960). If you plan to retire at age 62, these benefits will be reduced to eighty percent of the complete benefit if 65 years old is the normal retirement age, and seventy percent of the complete benefit if 67 years old is the normal retirement age. Always remember that you will always get reduced benefits if you plan to retire at age 62; they will not increase to full benefits even when you finally reach your normal retirement age. In short, you shouldn't expect to receive a complete retirement benefit from the Social Security program before you reach 62, and you may get higher amount if you wait until 65 to 67 years old (whatever the “normal retirement age” is), or maybe even 70.
A few years ago, the SSA (Social Security Administration) began mailing annual statements to all workers who are above 25 years old. Those statements estimate the amount of money they will receive monthly at 62 years old, the minimum retirement age, to 70 years old, determined by their income to date. However, if you misplace those statements and can’t find them, then you should contact the SSA to get a new one from their official website. Maybe, you opt not to send sensitive personal data over the Internet; try to download a form, which can be mailed directly to the SSA. You may also request all necessary request forms by telephone, call them at 800-772-1213, or if possible, you can appear in person at the nearest Social Security office.
You should factor the estimated benefit amounts into the planned retirement incomes; however, remember that Social Security was originally never meant to be the only source of retirement incomes. What’s more, your future of Social Security can be somewhat unpredictable. Although most Social Security benefits will not disappear entirely during the next twenty to thirty years, they may be significantly reduced.
tags: personal finance, social security, income, retirees
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