When you retire, having enough money in your nest egg is crucial. Not only will it allow you to live comfortably during your retirement years, but it will also help you in any sudden emergencies. Because of this, it’s ideal for planning and managing the sources of your retirement income as early as possible.
One common source of income when you retire is Social Security benefits. Social Security is a government program that extends benefits to qualified disabled workers, retirees, and their families. Here’s what you need to know:
Who Is Eligible for Retirement Benefits?
Your eligibility starts when you begin working and paying Social Security taxes. Doing so allows you to earn and compile up to 4 credits per year. These credits depend on your earnings, and they may change every year. In qualifying for Social Security retirement benefits, you’ll need to earn 40 credits.
When Can You Receive Retirement Benefits?
You may receive retirement benefits as early as age 62. But at this age, you’ll only get 70% of your full standard benefit. To receive the full amount, you’ll have to reach your full retirement age (FRA) first, which depends on the year you were born. For people born between 1943 to 1954, their FRA is at age 66. It will increase by 2 months every year, so for anyone born in 1960 and later, their FRA will be at age 67.
Aside from that, you can still claim your Social Security benefits even after your full retirement age. But, the amount will only increase until the age of 70.
How Much Will Your Retirement Benefit Be?
Your full retirement benefit will depend on your average income during your career. But, there are various other factors that may affect this benefit, such as the type of earnings, taxes, and age of claiming. To find out more about your retirement benefits, you may sign up for a my Social Security account. You can also get an estimate through the retirement benefits calculator at ssa.gov, the Social Security Administration’s website.
Reach Out to LoneStar Wealth Management
Learning about Social Security retirement benefits will help you plan for your retirement. If you need more help with various financial strategies, reach out to a professional. Contact LoneStar Wealth Management in Lubbock, TX, about retirement planning and other financial services.