When it comes to planning for retirement, not every strategy takes years to pay off. Some moves can be made in just minutes and still significantly impact your future. For millions of Americans relying on Social Security benefits, taking the time to perform a simple task now can greatly affect your retirement income.
Here’s how to take control of your Social Security benefits in just a few minutes.
Check Your Estimated Social Security Benefits Online
One of the easiest and most important things you can do right now is to check your Social Security benefits estimate through your My Social Security account.
This tool is available to anyone who has worked long enough to qualify for benefits (typically at least 10 years). Simply log in or create an account on the Social Security Administration (SSA) website.
Once logged in, you can:
- View your estimated benefit amount at your Full Retirement Age (FRA), which is typically around 66 or 67.
- See how your benefits would change if you claim early (as early as 62) or delay benefits up to age 70.
- Review how your spousal benefits might look if you’re married or divorced.
Understanding how much you can rely on Social Security will help you better prepare for your retirement. This will ensure you’re not guessing at how much income you’ll have in the future.
Why This Step is Crucial
As of 2024, around 88% of retirees rely on Social Security to cover some or all of their living expenses. Social Security is important for income, especially as prices keep going up.
Checking your estimate now helps you plan for how much you’ll need to save on your own. Without this information, you could risk falling short of the income needed to comfortably retire.
When it comes to planning for retirement, not every strategy takes years to pay off. Some moves can be made in just minutes and still significantly impact your future. For millions of Americans relying on Social Security benefits, taking the time to perform a simple task now can greatly affect your retirement income.
How to Increase Your Social Security Payments
- Work for More Than 35 Years: Your Social Security benefits are based on the 35 highest-earning years of your career. If you continue to work beyond 35 years, especially if your salary is higher later in your career, this can replace lower-earning years in the calculation, boosting your benefits.
- Delay Claiming Benefits: The more you wait to get your benefits, the more money you will get. For instance, delaying until age 70 could increase your monthly benefit by as much as $740 compared to claiming at age 62.
- Spousal and Divorce Benefits: If one is married or divorced, they may be eligible for spousal benefits, which can potentially amount to 50% of their spouse’s benefit.This option can significantly increase your retirement income.
Making small, informed moves now can greatly improve your financial outlook in retirement. Checking your estimated Social Security benefits is a quick and easy step that takes just minutes but can affect how much money you’ll have in your later years. By planning now and considering strategies like delaying benefits or working longer, you can set yourself up for a more comfortable retirement.
FAQs
You can start checking your estimated benefits as soon as you’ve worked long enough to qualify (typically after 10 years of employment).
Yes. Every month you delay claiming benefits past age 62 increases your payments, with the maximum benefit available at age 70.
Social Security calculates your benefits based on your 35 highest-earning years. Working beyond 35 years can replace lower-earning years in the calculation, potentially increasing your benefit.
Yes. Spouses (and divorced spouses) may be eligible for up to 50% of their spouse’s benefit.
Visit the Social Security Administration website and follow the instructions to create an account. You’ll need personal information such as your Social Security number and an email address.
