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How to determine what you want to receive in social security benefits



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Almost half of baby boomers have nothing "data-response time =" 11 "> Almost half of baby boomers have nothing at all saved for retirement, according to a report by the Insured Retirement Institute.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For those who fall behind their pension savings (or has not yet begun to save at all), it may be the only way to survive retirement age on the basis of social security benefits, even if you have a fixed second line, the extra money you receive from Social Security can make the difference between a comfortable pension and a truly amazing one. "Data-reactid =" 12 "> For those who fall behind on their retirement savings (or have not yet started saving at all), it may is the only way to survive retirement age on relying on social security schemes. Even if you have a solid nose egg, the extra money you receive from Social Security can make the difference between a comfortable pension and a truly amazing one.

<p class = "canvas-canvas-text-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "But how much will you actually get in Social Security Benefits? The average check amounts to $ 1,461 per month, according to Social Security Administration but your exact number depends on a few factors. It's a good idea to decide what to expect to receive before you go pension, because it can have a big impact on how to build up your savings. "data-reactid =" 13 "> But how much do you actually get in social security schemes? The average check amounts to $ 1,461 per month, according to the Social Security Administration, but your exact number depends on a few factors. It is a good idea to decide what to expect before you retire because it can have a major impact on how to build your savings.

Social security card stacked on top of each other

Image source: Getty Images.

Determining your calculated benefit amount

<p class = "canvas-atom canvas- text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " is a rather complicated formula involved in calculating your benefits but not worrying – you won I do not have to run the calculations myself ( unless you want to of course.) The easiest way to get an estimate of your reward amount is checking your social security information online. "data-reactid =" 27 "> It is quite a complex formula involved in calculating your benefits but not worrying – you don't have to run the calculations yourself (unless you want to, of course) . Rather, the easiest way to get an estimate of your reward amount is to check your social security statements online.

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt 0.8em) – sm" type = "text" content = "Through the Social Security program you can create one account and check your statements quickly and easily online, these statements report your earnings for the year, as well as the amount you expect to receive in social security benefits based on these earnings, it only takes a few minutes to see your calculated benefits and yet only 43% of workers who have a my Social Security account actually have access to their statements, according to SSA. "data-response time =" 28 "> Through the Social Security program you can create an account and check your statements quickly and easily online. These statements report your earnings for the year, as well as the amount you estimate to receive in Social Security based on those earnings. It only takes a few minutes to see your calculated benefits, and yet only 43% of employees who have a personal account have access to their statements, according to SSA.

Remember that the amount you see on your statement may not be the exact amount you receive because the exact amount of benefit depends on some factors.

First, the basic amount is based on the 35 most profitable years you have worked. So, if you have not yet worked for 35 years, your benefit estimation will not be accurate. This is especially true if future earnings are much higher or lower than what you now earn. Also, if you are not working for a full 35 years before you claim benefits, it can cause you to get a downturn because you have zero in the calculation to account for the years you did not have any income.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Another factor affecting how much you actually received is the age when you begin to claim benefits.The basic benefit amount assumes that you claim to have full retirement age (FRA) (FRA), who is 67 years of age for those born in 1960 or later and 66 or 66 and a few months for those born before 1960. You can claim as early as 62 years, but for each month you claim before FRA, your benefits will be reduced, if you have a FRA of 67, your benefits will be reduced by 30% if you require 62. "data-response time =" 31 "> Another factor affecting how much you will actually receive is age when you begin to claim benefits. Your basic benefit amount assumes that you are in full retirement age (FRA), which is 67 years of age for those born in 1960 or later, and 66 or 66 and some months for those born before 1960. You can claim that early like 62, but for every month you claim before FRA, your benefits will be reduced. If you have a FRA of 67, your benefits will be reduced by 30% if you claim 62.

On the other hand, you can also increase the amount you receive each month by waiting until after FRA has claimed . For each month you delay your benefits to FRA – up to 70 years – you get a little extra each month. Those with a FRA of 67 can expect to receive an additional 24% on top of their full amount by waiting to claim up to 70 years. So the estimated amount on your social security scheme is not set in stone, and if you claim earlier or later than FRA, you will receive more or less each month.

How Your Benefit Assessment Affects Pension Planning

Knowing how much you are expected to receive in social security benefits, does more than just satisfy your curiosity; It can also help you plan for retirement more effectively.

Insurance money is designed to replace about 40% of your retirement income. So while they should not be your only source of retirement income, they can cut your personal savings. When deciding how much you need to save for retirement, don't forget to consider how your benefits will affect that number.

For example, say you expect to need around $ 50,000 a year in retirement, and you also expect to receive around $ 1,600 per month in social security benefits if you claim to be with your FRA. These benefits amount to $ 19,200 per year, which means that $ 50,000 each year needs just about $ 30,800 from your personal savings. It can make saving significantly easier, since you do not have to set aside a month per month to reach retirement goals.

<p class = "canvas-textile textile Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you are still struggle to Retirement Retirement Savings You can choose to delay claiming social security benefits for a few years to earn the larger controls. In this example, you are claiming to receive close to $ 2000 per month by waiting for 70 years to claim. & nbsp; It comes out to around $ 24,000 a year.If you still need $ 50,000 a year to get by, it means that only $ 26,000 a year has to get out of your pocket, as opposed to $ 30,800 , if you have claimed benefits at FRA, as an added bonus, if you also continue to work for a few years while you're waiting for benefits, giving you more time to continue saving. "data response = "41"> If you are still struggling to save on retirement, you can choose to delay to claim social security benefits for a few years to earn the larger controls. In this example, you say you receive close to $ 2000 per month by waiting for 70 years to claim. It comes out to around $ 24,000 a year. If you still need $ 50,000 a year to get past, it means that only $ 26,000 per year has to get out of your own pocket, unlike $ 30,800, you would have claimed benefits at FRA. As an added bonus, if you also continue to work for several years while waiting to claim benefits, it will give you more time to continue saving.

Insurance money can be incredibly valuable in retirement, especially if you save falls short. But if you have no idea what monthly benefits you can expect to receive, retirement can be a challenge. The more you know how much you can get and how these benefits affect your savings, the easier it will be to prepare for your best retirement age.

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