Social Security Retirement Benefits

Let’s talk about your retirement. Just imagine what you will do with that free time – the places you will go and the people you will see. Your retirement will be fantastic! Planning for retirement might not be so enjoyable, however, but it has to be done. Retirement planning often involves crucial decisions about when to take Social Security retirement benefits.

How does the Social Security system work?

You pay taxes into the Social Security system (which your employer usually automatically deducts from your earnings). If you are self-employed, this will be paid (along with Medicare taxes) via your Self-Employment Tax. The more you pay into the Social Security system, the more credits (benefits) you accumulate. If you retire or cannot work due to disability, you can apply to receive the Social Security benefits you’ve earned.

There are three types of Social Security retirement benefits based on an individual’s work record: retirement benefits for the worker, spousal benefits, and survivor benefits. This post only discusses retirement benefits, not spousal or survivor benefits.

When can I start receiving Social Security retirement benefits?

You must be between the ages of 62 and 70 to start collecting Social Security retirement benefits. You may choose to begin collecting benefits anywhere in those eight years. However, most people wait to receive benefits until later because the longer you wait to start receiving benefits, the larger your monthly payments will be – and they will stay at that rate forever. This increase in your monthly Social Security retirement benefits is known as a Delayed Retirement Credit. If you decide to delay your retirement benefits, be sure to still sign up for Medicare at age 65. Delaying this may increase your Medicare costs.

So how much will I receive in Social Security retirement benefits?

The amount of your Social Security benefits will depend mainly on three things:

1. The number of years you worked.
2. How much money you made at those jobs.
3. The age at which you retire and start collecting Social Security benefits.

Check out this article: Popular Ages to Collect Social Security.

Discussing Social Security retirement benefits with your estate planning attorney is critical. An estate planning attorney can help you coordinate your Social Security benefits as part of your greater estate and retirement plans. Contact the estate planning attorneys at McNeelyLaw for help accomplishing your retirement and estate planning goals.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.