For most individuals, social security retirement benefits can play a key role in figuring the right age for retirement, and maximizing income during later years. While social security will not usually be the only source of retirement income, the benefits can be substantial. Many want to have these questions answered when they near retirement age:
· When does social security allow me to retire?
· How much will my benefit be when I retire?
· Can I continue to work after I start to take retirement benefits?
· How does my decision to retire affect my spouse's benefits?
· How much of my social security retirement benefits will be taxable?
· Is there any advantage to deferring retirement to much later?
· Are there any special rules that affect my decisions about social security?
Social security retirement benefits are available to individuals who meet three requirements:
�� The retiree must have 40 quarter-year credits for covered work.
�� The retiree must be 62 years of age or older.
�� The retiree must apply for the benefit.
The normal retirement age comes a few years later than age 62, depending on the retiree's year of birth. In the past, normal retirement age was 65. Those who are reaching normal retirement
age now are 66. For those born in 1960 or later, the normal retirement age will be 67. The amount of social security benefits that will be available during retirement depends on a number of factors:
· Earnings during working years
· Marital status
· Age at retirement
· Whether you plan to continue to work after you start receiving benefits
· Spouse's work history
· Whether any government pensions are due
Despite its critics, the social security system provides an important retirement benefit for taxpayers. Most clients rely on social security to meet at least some of their retirement income needs.
However, many are worried that social security benefits plus their own retirement savings may not be enough.
Please feel free to call if you would like help to calculate your projected retirement benefits.
