What You Need To Know About Social Security Benefits
Americans greatly depend on just two major sources with regards to retirement income namely the Social Security and the Employer Pensions. However, most of these people won't be able to depend on these alone to render them income since Social Security benefits are becoming less and the number of employers who provide pensions are becoming few.
This is why personal savings are essential for this might be the only viable solution when it comes to retirement income.
A person is only eligible to receive social security benefits if he is consistent in his contributions amounting to that of at least 10 years. The amount of benefit is not the same for every individual. It is determined by the amount of your contribution and the age at which you choose to receive the benefits.
These benefits have two sides. The good side is that it is being regulated to increase with inflation. The negative side is that the savings used in determining the support is limited or restricted. Even if it is going to increase because of inflation, the cap will make the higher income-earning individuals get a lower proportion of the earnings prior to retirement than those people who are earning less.
In order to receive full benefits from your social security, you need to be on the right retirement age. The retirement age before is 65. However, actual required full retirement age is increasing for those born in 1938 or later. It reaches the ripe age of 67 for individuals born after 1959.
If you want to estimate the benefits, you can log on to the website of Social Security Administration at www.ssa.gov. Another way is to review the annual statement that will be sent by the SSA around three months prior to your birthday. If it has not arrived yet, then you can just request online.
Early vs. Late Acquisition of Benefits
You can choose to start getting your benefits even as early as 67. However, expect that you will receive fewer benefits compared to if you have waited for your actual and full retirement age to come first. For instance, 66 is your full retirement age and you decided getting your benefits by age 62. Then you will be receiving just around 75% of the amount you are supposed to have. For every month that you wait patiently for until you reach the actual age, your monthly benefits are set to increase. So in this example, by age 63, you will get about 80% of the actual amount.
If you still want to increase the benefits that you will get, you can try to wait for a year or so once you have reached your full retirement age. As an example, if your full retirement age is at 66, you may receive 132% benefits monthly if you will wait for it until you are 70.
Better take note that even if you will receive less payment monthly when you decide to take your benefit early, over your lifetime, it would have amounted more. Meantime, you might get more monthly benefit if you take it late in age, but over your lifetime, you will really receive less. The choose is really up to you and will depend greatly on how much longer you will live. If you want to know more about varying benefits at different age levels, visit the SSA website.
Keeping in Mind the Benefits of Your Spouse
Even if your spouse never acquired earnings under the system of Social Security, he or she is still entitled to become a beneficiary under your record. Depending on the ages of your kids, they are also eligible to receive benefits.
If you start getting benefits at full retirement age, then your spouse can get about 50% of your benefits. If you will take in your benefits at an early age, then your spouse's benefits will lessen too. The percentage or rate of the benefits they are to get will vary on when you will take your benefits.
Remember that the spouse may be eligible for his or her benefit. With this, he or she will be given the higher among the two amounts. - 23204
This is why personal savings are essential for this might be the only viable solution when it comes to retirement income.
A person is only eligible to receive social security benefits if he is consistent in his contributions amounting to that of at least 10 years. The amount of benefit is not the same for every individual. It is determined by the amount of your contribution and the age at which you choose to receive the benefits.
These benefits have two sides. The good side is that it is being regulated to increase with inflation. The negative side is that the savings used in determining the support is limited or restricted. Even if it is going to increase because of inflation, the cap will make the higher income-earning individuals get a lower proportion of the earnings prior to retirement than those people who are earning less.
In order to receive full benefits from your social security, you need to be on the right retirement age. The retirement age before is 65. However, actual required full retirement age is increasing for those born in 1938 or later. It reaches the ripe age of 67 for individuals born after 1959.
If you want to estimate the benefits, you can log on to the website of Social Security Administration at www.ssa.gov. Another way is to review the annual statement that will be sent by the SSA around three months prior to your birthday. If it has not arrived yet, then you can just request online.
Early vs. Late Acquisition of Benefits
You can choose to start getting your benefits even as early as 67. However, expect that you will receive fewer benefits compared to if you have waited for your actual and full retirement age to come first. For instance, 66 is your full retirement age and you decided getting your benefits by age 62. Then you will be receiving just around 75% of the amount you are supposed to have. For every month that you wait patiently for until you reach the actual age, your monthly benefits are set to increase. So in this example, by age 63, you will get about 80% of the actual amount.
If you still want to increase the benefits that you will get, you can try to wait for a year or so once you have reached your full retirement age. As an example, if your full retirement age is at 66, you may receive 132% benefits monthly if you will wait for it until you are 70.
Better take note that even if you will receive less payment monthly when you decide to take your benefit early, over your lifetime, it would have amounted more. Meantime, you might get more monthly benefit if you take it late in age, but over your lifetime, you will really receive less. The choose is really up to you and will depend greatly on how much longer you will live. If you want to know more about varying benefits at different age levels, visit the SSA website.
Keeping in Mind the Benefits of Your Spouse
Even if your spouse never acquired earnings under the system of Social Security, he or she is still entitled to become a beneficiary under your record. Depending on the ages of your kids, they are also eligible to receive benefits.
If you start getting benefits at full retirement age, then your spouse can get about 50% of your benefits. If you will take in your benefits at an early age, then your spouse's benefits will lessen too. The percentage or rate of the benefits they are to get will vary on when you will take your benefits.
Remember that the spouse may be eligible for his or her benefit. With this, he or she will be given the higher among the two amounts. - 23204
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posted by X - Men @ 4:08 AM
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