Retirement Planning - Getting Your Retirement Income In Time
Retirement usually means a lot of free time from now on. There are also two things that automatically come to mind, social security and employer pensions. Unfortunately, these two may not be enough to support the life of a retiree. Benefit from social security is deemed to be too small and there are less and less employers willing to provide pensions.
Because of this, people find out that their personal income on both the retirement and off-retirement accounts are very good financial support upon retirement.
Social Security
To pass for the series of its benefits, you must be able to render contributions to the system for a total of ten years. The basis of your benefits would also be your earnings before you reach the age of retirement.
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.
Once you reach your age of retirement than you can fully receive your benefits. The usual retirement age is 65 but for those born in year 1938 or much later, the age increases to 67 for those born after the year 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.
Spousal benefits is also available
Even if your spouse does not have any earnings with Social Security, he or she will still get the benefits because of your record. Your children will also be eligible but this will depend on their age.
At the full retirement age, the spouse will receive 50% of the benefit that the registered person is eligible for. For those who would like to take their benefits early, the amount of benefit for the spouse will be decreased accordingly.
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. - 23159
Because of this, people find out that their personal income on both the retirement and off-retirement accounts are very good financial support upon retirement.
Social Security
To pass for the series of its benefits, you must be able to render contributions to the system for a total of ten years. The basis of your benefits would also be your earnings before you reach the age of retirement.
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.
Once you reach your age of retirement than you can fully receive your benefits. The usual retirement age is 65 but for those born in year 1938 or much later, the age increases to 67 for those born after the year 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.
Spousal benefits is also available
Even if your spouse does not have any earnings with Social Security, he or she will still get the benefits because of your record. Your children will also be eligible but this will depend on their age.
At the full retirement age, the spouse will receive 50% of the benefit that the registered person is eligible for. For those who would like to take their benefits early, the amount of benefit for the spouse will be decreased accordingly.
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. - 23159
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This data is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional advice or opinions and assumes no liability in connection with its use. Please contact Doeren Mayhew for more information.
posted by X - Men @ 4:27 AM
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