How Much Will I Get in Social Security?

If you’re approaching retirement age, it’s important to plan accordingly for how you’re going to afford all your living expenses. Since you won’t be working anymore, you’ll need sources of income from channels like retirement savings plans. These plans are, of course, supplemented by monthly Social Security payments, the U.S. government’s method for supporting older Americans who are no longer employed.

Since its inception in the 1930s, Social Security has helped countless millions of Americans during retirement. How much retirees receive from Social Security has changed countless times over the decades to keep up with the rising cost of living. There are also a number of different rules in place that influence what someone entering retirement is entitled to. The question, therefore, is how much can you expect to get in Social Security if you retire today?

Understanding How Social Security Works

As a social insurance program, Social Security is a lifeline for retired workers, their spouses, widows and widowers, and children. It’s also integral for supporting disabled workers and their families. Since it’s funded by payroll taxes paid by most workers and their employers, any Social Security payments you receive after retiring are the return on an investment you made all through your working life.

That said, how much you’ll get for a Social Security payment will differ depending on quite a few circumstances. This is because Social Security benefits are based on your earnings history. The longer you work and the higher your earnings, the higher your benefits will be. You can start receiving Social Security benefits as early as age 62, but your benefits will be reduced if you do so. You can also delay retirement and receive higher benefits as a result, which can be advantageous if you’re in a situation where it’s possible to wait additional years before receiving benefits.

How Social Security Determines Your Benefit Amount

Another factor that affects how much Social Security you will receive — in addition to earnings history and your age at retirement — is whether you have any dependents. Because of all these variables, it’s hard to pin down exactly what you’ll be receiving. Additionally, Social Security benefits undergo regular cost-of-living adjustments, which also influences total payouts.

This means that in general, the longer you delay retirement, the more you’ll receive in Social Security payments, but since your total payment is also determined by earnings levels, it’s often necessary to look up this information. Thankfully, the Social Security Administration offers tools to help you estimate what your benefits might be under specific circumstances. Their online retirement estimator is a free service that lets you see the difference between what your benefits might be depending on the variables you input.

When Should I Retire?

With the revelation that the amount of Social Security benefits you receive generally increases when you delay retirement for a few years, you might consider doing so if you want to maximize your benefits payments. It could mean forgoing payments in the short-term for larger payments in the long-term. But this isn’t always the only deciding factor when it comes to when you want to retire. The decision is a personal one with no right or wrong answer.

Many people approaching retirement age might simply not be ready to retire because they’re satisfied with their current employment or they’re pursuing personal goals. Others might not be ready because they need more time to get their financial situation in order. Others still might feel that they are still relatively active and healthy, which means they don’t see the need for retirement just yet. By the same token, they might feel like retiring early will allow them to enjoy their lives more. Some may be done with their career, but choose to work a different type of job to stay active. The decision is a complex one, to be sure.

What Other Benefits Does Social Security Provide?

Social Security’s major role that it plays in our society is to provide benefits for people deciding to retire. Yet that’s not the only thing that Social Security does for Americans. In fact, the SSA provides a large selection of so-called “social safety net” benefits to people of all types, not just those ready to retire. The benefits the Social Security Administration provides include:

• Disability benefits: these benefits are available to workers who are unable to work due to a physical or mental impairment that is expected to last at least one year or result in death.
• Widow(er) benefits: these benefits are available to the surviving spouses of deceased workers.
• Survivor benefits: these benefits are similar to widow(er) benefits but are instead available to the children of deceased workers.
• Supplemental Security Income (SSI): this program provides financial assistance to low-income individuals who are aged, blind, or disabled, often regardless of work history.

How Can I Get More Information About Social Security?

Whether you decide to retire early, retire late, or somewhere in the middle is your own personal decision. However, you do need to have the right information at your fingertips so that you know your options. This makes it easier to make informed decisions about your retirement plans. Thankfully, The SSA provides a wealth of information about Social Security on its website. You can also contact the SSA toll-free at 1-800-772-1213 to speak with a representative.

However, you don’t always have to speak directly with an SSA representative or visit the website. You can also speak with a financial planner that specializes in retirement planning, as these individuals often have detailed information on how Social Security works. Since Social Security is such an important source of income for many retirees, it’s crucial that you understand how Social Security works and how much you can expect to get. Be sure to speak to an expert so that you get accurate information that you can rely on.

While deciding when to start taking Social Security is an important decision, when it does come time for you to retire, another important decision is where you should live. If you’re interested in maintaining a consistent budget while enjoying quality of life amenities and the opportunity to spend your retirement exactly how you’d prefer, consider a retirement community. Today’s modern retirement communities provide lovely living accommodations (from apartments to cottage homes and villas), top-notch amenities including swimming pools and fitness rooms with trainers, fine dining, opportunities to socialize and participate in hobbies, and so much more.

It’s likely not at all what you’re expecting. If interested, explore some of the country’s finest retirement communities now.