5 social security measures to take 10 years before retiring

There are a lot of things you could do – and a lot that you should be doing – before you retire. For example, you might want to search online for things to see and do on your big trip to Europe. You can clean your golf clubs and prepare them. You might start rummaging through closets for old work clothes that you don’t need and that you can sell or donate to charity.

There are also financial things to do before you retire, especially those related to Social Security. Here are five to put on your to-do list.

Image source: Getty Images.

1. Learn your “full retirement age”

When dealing with Social Security, a lot depends on your full retirement age, which is the age at which you can start receiving the full benefits to which you are entitled, depending on your employment history. The full retirement age for most of us is 66 or 67. You can actually start collecting your benefits at age 62, but you can delay the start of collection until age 70. Starting early will result in smaller checks (although you will get a lot more), and delaying will make your checks bigger.

Here’s an overview of how much of your full social security benefits you’ll get if you start collecting contributions at different ages:

Start collecting at:

66 years of full retirement age

67 years of full retirement age

62

75%

70%

63

80%

75%

64

86.7%

80%

65

93.3%

86.7%

66

100%

93.3%

67

108%

100%

68

116%

108%

69

124%

116%

70

132%

124%

Source: Social security administration.

2. Obtain a “my Social Security” account

Then go to the Social Security Administration website and set up a “my social securityThis will allow you to see a statement of your income, year by year, as well as estimates of your Social Security benefits, depending on when you claim them. (Pro tip: if you see errors in your record income, try to get them fixed, as this may increase your future benefits.)

3. Work to maximize your benefits

A key way to increase your benefit checks is to delay the start of collection. This is not the only way to increase your social security benefits, although. You might also work to get the most out of the formula used to calculate your benefits. For example, it is based on the average of your earnings (adjusted for inflation) over the 35 years in which you earned the most. So if you only worked 30 years when you retire, five zeros will factor into the calculations. If you can work a few more years, you can increase your benefits. If you do have 35 years of income, but you are currently earning much more than you have ever earned, by continuing to work for one or more years you will be able to get rid of your lower paid years and replace them with those who earn more .

4. Have a comprehensive retirement plan

Another key thing you need to discuss about Social Security before you retire is how it will fit into your overall retirement plan. This means, first of all, development a pension plan if you don’t already have one. On your own or with the help of a finance pro, discover how much money you will need in retirement and how you will raise the necessary funds.

Note that the average monthly Social Security benefit check was recently $ 1,523, or just over $ 18,000 per year. You will probably collect a little more or less than that, and you will probably want to increase that with investment income.

5. Think about when you want to start collecting your benefits

Now that you are armed with information about your full retirement age, expected benefits, and more, start thinking about when you want to start collecting your benefits. There are good reasons to start early and good reasons to start late. It all depends on such factors as how long you need or want to work, how much income you need and how long you expect to work.

The above steps are good to take when you are five or ten years away from retirement, but are worth considering and considering even when retirement is 20 years away, to help you plan for your future financial security. and determine how much you might need to save and invest each year. Don’t leave your retirement to chance!

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