Social Security Questions: Retirement Answered
Many questions arise regarding collecting social security during retirement as of late – often due to concerns about how long the social security system in our country will last. Below are a few frequently asked questions about social security retirement benefits along with some answers that will help you to plan wisely for your retirement.
When can I begin receiving Social Security Benefits?
Many people begin receiving benefits at age 62. Should you decide to start receiving social security at 62 – you’ll receive 75% of the monthly benefit because you’ll be receiving benefits for an additional 48 months. Full retirement age is 66 for most people (unless that person is a survivor – or widow or widower, in which case full retirement age may be lowered). For each month closer to age 66 that you begin receiving benefits, the larger the percentage of monthly benefit you’ll receive.
When should I register to receive Social Security Benefits?
The government suggests that you register for benefits three months before you expect to be receiving benefits. The earliest age you can start receiving benefits at is age 62. Survivors may be eligible to start receiving benefits as early as age 60.
Can I work while receiving Social Security Benefits?
You are able to work while receiving Social Security benefits. However, if you’re under full retirement age and you earn more than the annual limit – $1 will be deducted for every $2 earned. Once you reach full retirement age, however, there will be no deductions made to your benefits regardless of wages earned.
How much should I expect to receive from Social Security?
The average monthly benefit for a retired worker is somewhere around $1,300 currently. Retired workers may expect to receive more or less, based on their age and the amount paid into social security while part of the workforce.
Will withdrawals from my other retirement accounts affect my Social Security payout?
Pension payments, annuities, and the interest or dividends from savings or investments are not considered earnings by Social Security. Any money of this type used while receiving social security benefits will not cause deductions from your monthly benefits.
There are plenty of other questions to be answered about social security and retirement planning. Attorneys and accountants are your best friends when planning for your retirement and planning for your family’s future once you’re no longer a wage earner.