Planning to Retire? Find Answers to Social Security Questions

January 27, 2021

Social Security provides benefits to about one-fifth of the American population and serves as a vital protection for working men and women, children, people with disabilities, and the elderly. The Social Security Administration (SSA) will pay approximately one trillion dollars in Social Security benefits to roughly 70 million people in 2021. Almost eight million people will receive Supplemental Security Income (SSI), on average, each month during 2021. Beyond those who receive Social Security benefits, about 178 million people will pay Social Security taxes in 2021 and will benefit from the program in the future. That means nearly every American has an interest in Social Security, and SSA is committed to protecting their investment in these vital programs.

Social Security payments are adjusted each year to keep pace with inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. The 1.3 percent Social Security cost-of-living adjustment for 2021 is down from 1.6 percent in 2020. The average monthly Social Security benefit in January 2021 was $1,543. The maximum possible monthly Social Security benefit in 2021 for someone who retires at full retirement age is $3,148.

The most convenient way to get information and use online services from SSA is to visit or to call SSA at 800-772-1213 or at 800-325-0778 (TTY) if you’re deaf or hard of hearing. SSA staff answers phone calls from 8 a.m. to 7 p.m., weekdays. You can use SSA’s automated services via telephone, 24 hours a day.

What is the best age to start your benefits?

There is no one “best age” for everyone. Ultimately, it’s your choice. You should make an informed decision about when to apply for benefits based on your personal situation.

Your monthly benefit amount can differ greatly based on the age when you start receiving benefits.

  • If you start receiving your benefits as early as age 62, before your full retirement age, your benefits will be reduced based on the number of months you receive benefits before you reach your full retirement age.
  • At your full retirement age or later, you will receive a larger monthly benefit for a shorter period. If you wait until age 70 to start your benefits, your benefit amount will be higher because you will receive delayed retirement credits for each month you delay filing for benefits. There is no additional benefit increase after you reach age 70, even if you continue to delay starting benefits.
  • The amount you receive when you first get benefits sets the base for the amount you will receive for the rest of your life.

What should you consider before you start drawing benefits?

  • Are you still working? If you plan to continue working while receiving benefits, there are limits on how much you can earn each year between age 62 and full retirement age and still get all of your benefits. Once you reach full retirement age, your earnings do not affect your benefits.
  • What is your life expectancy? If you come from a long-lived family, you may need the extra money more in later years, particularly if you may outlive pensions or annuities with limits on how long they are paid. If you are not in good health, you may decide to start your benefits earlier.
  • Will you still have health insurance? If you stop working, not only will you lose your paycheck, but you also may lose employer-provided health insurance. Although there are exceptions, most people will not be covered by Medicare until they reach age 65. Your employer should be able to tell you if you will have health insurance benefits after you retire or if you are eligible for temporary continuation of health coverage. If you have a spouse who is employed, you may be able to switch to their health insurance.
  • Should you apply for Medicare? If you decide to delay starting your benefits past age 65, be sure to go online and file for Medicare. You will need to apply for Original Medicare (Part A and Part B) three months before you turn age 65. If you don’t sign up for Medicare Part B when you’re first eligible at age 65, you may have to pay a late enrollment penalty for as long as you have Medicare coverage. Even if you have health insurance through a current or former employer or as part of your severance package, you should find out if you need to sign up for Medicare. Some health insurance plans change automatically at age 65.

How can you get a personalized retirement benefit estimate?

Choosing when to retire is an important and personal decision. The best way to start planning for your future is by creating a my Social Security account. With your personal my Social Security account, you can verify your earnings and use SSA’s Retirement Calculator to get an estimate of your retirement benefits.

What happens to Social Security payments when a recipient dies?

  • If a person who was receiving Social Security benefits dies, a payment is not due for the month of his death.
  • In most cases, funeral homes notify SSA that a person has died by using a form available to report the death.
  • The person serving as executor of the decedent’s estate or the surviving spouse also can report the death to SSA.
  • Upon the death of a Social Security recipient, survivors are generally given a lump sum payment of $255.
  • Survivor benefits may be available, depending on several factors, including the following:
  • If the widow or widower has reached full retirement age, they can get the deceased spouse’s full benefit. The survivor can apply for reduced benefits as early as age 60, in contrast to the standard earliest claiming age of 62.
  • If the survivor qualifies for Social Security on their own record, they can switch to their own benefit anytime between ages 62 and 70 if their own payment would be more.
  • An ex-spouse of the decedent also might be able to claim benefits, as long as they meet some specific qualifications.
  • For minor children of a person who died, benefits also may be available, as well as to surviving spouse who is caring for the children.

How can you start receiving Social Security benefits?

  • To start your application, go to SSA’s Apply for Benefits page and submit your application online.
  • After SSA makes a decision about your application, you’ll receive a confirmation letter in the mail. If you included information about other family members when you applied, SSA will let you know if they may be able to receive benefits from your application.
  • You can check the status of your application online using your personal my Social Security account. If you are unable to check your status online, you can call SSA at 800-772-1213 (TTY 800-325-0778) from 8 a.m. to 7 p.m., weekdays.
  • You can do most of your business with SSA online. If you cannot use these online services, your local Social Security office can help you apply. Although SSA offices are closed to the public during the COVID-19 pandemic, employees from those offices are assisting people by telephone. You can find the phone numbers for your local office by using the Field Office Locator and looking under Social Security Office Information.

What if you want to withdraw your application?

After you have submitted your application, you have up to 12 months to withdraw it. You will be required to repay any benefits you’ve already received. Learn more about Withdrawing Your Social Security Retirement Application.


At, you can keep track of applications you submit to SSA and responses you receive for Social Security benefits. You also can file statements and notices you get from SSA throughout the years ahead during your retirement.

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Racing to Retirement?

September 14, 2020

If you had been carefully planning your retirement and thought that you had a few more years to accumulate a nest egg before you officially called it quits, you may be prompted during the COVID-19 pandemic, to shift gears and reevaluate your options.

Employees worldwide are enduring furloughs pending a rebound in the economy, permanent layoffs because of drastic downturns at their workplaces, or have decided not to return to a work environment that may expose them to COVID-19. If one of these, or another reason, has spurred you to consider or plan to retire sooner than you had anticipated, make sure your retirement income strategy is right for your current and future financial situation. You may want to consult a financial planner who can help you project and protect your retirement benefits while you decide when to retire.

Retirees with limited financial resources face numerous risks, including out-living their money, investment losses, unexpected health expenses, the unforeseen needs of family members, and even reductions in retirement benefits. Some workers, including teachers, restaurateurs, and healthcare providers, whose professions require close contact with others, have started withdrawing from the workforce earlier than they had planned because of challenges and concerns resulting from the COVID-19 pandemic.

The pandemic has hit older workers hard. The unemployment rate among Americans age 55 and up reached a staggering 13.6 percent in April, up from just 2.6 percent in January, according to the U.S. Bureau of Labor Statistics. As of August, the percentage had gone down to 7.7 percent but other data show that one in five Americans in their 60s has lost his job or has been furloughed due to COVID-19, according to the July 2020 Retirement Confidence Index by the financial technology company SimplyWise. Overall, 15 percent of Americans are now considering claiming Social Security benefits earlier than they had anticipated. One in five respondents who was laid off during the coronavirus pandemic is now planning to retire early.

If you can identify with these staggering statistics, take a deep breath and review the following suggestions to guide you to the finish line for a financially successful retirement.

Examine Expenses and Downsize

For many employees, the COVID-19 pandemic has revealed how fragile their financial security is. A recent survey from the National Endowment for Financial Education found that nearly 9 in 10 (88 percent) Americans said that the COVID-19 crisis is causing stress on their personal finances. Americans who are not yet retired but whose finances have been impacted by the pandemic can use this time to review their expenses and reduce unnecessary spending. You’ll need to take inventory of your entire financial situation and determine how much cash will see you through retirement.

Take Stock of Resources and Make Adjustments

Evaluate what resources you have available. Make any necessary adjustments to savings and portfolio asset allocations, including your 401(k) or 403(b) accounts, pension plans from former or current employers, IRA accounts, and annuities as well as Social Security benefits based on your employment and age. For those who are eligible but not yet drawing Social Security payments, this is a good time to consider how to maximize your benefits.

Decide how much money you want to keep in stocks vs. bonds, based on your risk tolerance and financial goals. Keep in mind, most people need to maintain a stake in stocks, even in retirement, to get the long-term growth they need. But for those who prefer a more cautious strategy—and for older investors who have already amassed enough savings to afford a comfortable retirement—it may make sense to reduce the percentage you invest in stocks and increase your fixed-income holdings.

Rethink Withdrawal Rate

People in or nearing retirement need to review their withdrawal rate, and the pandemic has given new urgency to designing a safe withdrawal strategy. The 4 percent rule is the traditional rule of thumb for retirement withdrawals. You take out 4 percent of your portfolio in the first year, then increase that amount by the inflation rate in subsequent years. Studies show that this strategy can minimize your risk of running out of money over a 30-year retirement.

The article, “Don’t Let the Coronavirus Derail Your Retirement: How to Get Back on Track If Your 401(k) Has Taken a Hit,” published in the May 2020 issue of  Consumer Reports advises retirees to consider skipping their required minimum distributions from their 401(k) plans and individual retirement accounts that is permitted this year under the coronavirus relief package. If you can forgo those withdrawals, your portfolio will have more time to recover from losses.

Consider Taking Social Security Early

The longer you wait to claim Social Security benefits, the larger the payout you’re likely to receive. If you are at the full retirement age between 65 and 67 years old, you can claim benefits about 30 percent higher than if you take them early starting at age 62. By waiting until you’re 70 years old, the benefit amount would be another 32 percent higher than the amount you’d get at full retirement age.

But waiting isn’t always the best option and individuals need to be aware of how claiming benefits at different ages will impact their overall retirement strategies.

Evaluate Employment Opportunities

If you figure out that you don’t have enough currently saved for a comfortable retirement, consider remaining at or returning to work–even in a part-time position. Earning additional income and accumulating money in your retirement savings account will be beneficial if you can delay retirement and avoid unemployment. One of the most effective measures for protecting your finances is to amass an emergency fund that can cover three to six months of expenses—perhaps as much as a year if your job isn’t secure. That money should be kept in a safe, easily accessible account, which will spare you from having to dip into retirement funds or rely solely on credit cards for unexpected bills.

Once you have come to terms with a retirement date and a vision of a secure financial future, store copies of your decisions for portfolio changes, Social Security formulas, records of all of your 401 (k) or 403(b) accounts, pension plans, IRA accounts, annuities, and other investments at

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Rеtіrеmеnt Cаlсulаtоr

November 5, 2016

Mаkіng thе dесіѕіоn whісh rеtіrеmеnt саlсulаtоr tо uѕе іѕ сrіtісаl tо еnjоуіng a ѕесurе аnd hарру rеtіrеmеnt ѕо dо nоt ассерt thе fіrѕt оnе thаt уоu fіnd. Mаnу оf thе саlсulаtоrѕ thаt аrе lіѕtеd оn thе fіrѕt раgе оf thе Gооglе ѕеаrсh rеѕultѕ fоr “rеtіrеmеnt саlсulаtоr” аrе nоt thе bеѕt саlсulаtоrѕ. They аrе оn thе fіrѕt search раgе bесаuѕе thеу аrе ѕроnѕоrеd bу lаrgе соmраnу wеbѕіtеѕ that hаvе hіgh Gооglе раgе rаnk.

Vіrtuаllу аll саlсulаtоrѕ аѕk bаѕіс ԛuеѕtіоnѕ аbоut сurrеnt аgе, еѕtіmаtеd rеtіrеmеnt аgе, аntісіраtеd уеаrѕ іn rеtіrеmеnt, сurrеnt vаluе оf rеtіrеmеnt ѕаvіngѕ, annual ѕаlаrу, аmоunt аddеd еасh уеаr tо уоur rеtіrеmеnt ѕаvіngѕ, еtс. Hоwеvеr, thеrе аrе ѕоmе vеrу іmроrtаnt ԛuеѕtіоnѕ thаt оnlу thе bеѕt rеtіrеmеnt саlсulаtоrѕ аѕk.

Hеrе аrе ѕоmе іmроrtаnt fеаturеѕ tо lооk fоr tо fіnd a gооd rеtіrеmеnt саlсulаtоr:

  • It ѕhоuld аllоw іndіvіduаl іnрut fоr уоu аnd уоur ѕроuѕе. It іѕ lіkеlу thаt уоu аrе dіffеrеnt аgеѕ аnd уоur ѕосіаl ѕесurіtу benefits wіll bе оn a dіffеrеnt ѕсhеdulе. Alѕо, оnе оr bоth оf уоu mау hаvе a реnѕіоn whісh іѕ dіѕtrіbutеd оn a dіffеrеnt ѕсhеdulе. Wіthdrаwаlѕ frоm уоur IRAѕ mау bе tіmеd dіffеrеntlу. Mаkе сеrtаіn thаt thеrе аrе dіffеrеnt іnрut fіеldѕ fоr аll оf thіѕ іnfоrmаtіоn. Sоmе саlсulаtоrѕ hаvе оnе box thаt уоu can сlісk tо іndісаtе іf thе саlсulаtіоn іnсludеѕ a ѕроuѕе. Do nоt ассерt thіѕ аѕ thе саlсulаtоr hаvіng ѕроuѕаl іnрut. Mоrе thаn lіkеlу, thіѕ іnрut оnlу сhаngеѕ thе Sосіаl Sесurіtу bеnеfіt еѕtіmаtе whісh іѕ dіѕсuѕѕеd lаtеr іn thіѕ аrtісlе.
  • Mоѕt ѕеnіоrѕ соntеmрlаtе hаvіng a rеtіrеmеnt jоb ѕо thе саlсulаtоr ѕhоuld аllоw fоr іnсоmе аftеr rеtіrеmеnt. It ѕhоuld аllоw іnрut fоr thе іnсоmе аmоunt, whеn thе іnсоmе ѕtаrtѕ, аnd whеn іt ѕtорѕ. Thіѕ саn hаvе a ѕubѕtаntіаl роѕіtіvе іmрасt оn уоur rеtіrеmеnt fіnаnсеѕ.
  • It ѕhоuld аllоw уоu tо ѕресіfу уоur еѕtіmаtеd роѕt rеtіrеmеnt іnсоmе. Mаnу rеtіrеmеnt саlсulаtоrѕ uѕе a fіxеd реrсеntаgе оf рrеrеtіrеmеnt іnсоmе аѕ thе nесеѕѕаrу роѕt rеtіrеmеnt іnсоmе. Thеѕе реrсеntаgеѕ аrе uѕuаllу in thе 75% – 90% rаngе whісh fоr mаnу реорlе іѕ tоо hіgh. Thе bеѕt саlсulаtоrѕ аllоw fоr time brасkеtѕ fоr уоur rеtіrеmеnt іnсоmе ѕіnсе nесеѕѕаrу rеtіrеmеnt іnсоmе uѕuаllу dесrеаѕеѕ wіth аgе. Crеаtе a budgеt оf уоur еѕtіmаtеd rеtіrеmеnt еxреnѕеѕ аnd еntеr thаt еѕtіmаtе оn thе саlсulаtоr. Yоu саn fіnd more іnfоrmаtіоn оn thіѕ іn thе rеѕоurсе іnfоrmаtіоn at thе еnd оf thіѕ аrtісlе.


  • Mаkе сеrtаіn thаt Sосіаl Sесurіtу іѕ іnсludеd іn thе саlсulаtоr аnd thаt іt аllоwѕ fоr іndіvіduаl іnut fоr bоth ѕроuѕеѕ. Also, іt ѕhоuld аllоw уоu tо іnрut thе bеnеfіtѕ. Sоmе саlсulаtоrѕ еѕtіmаtе Sосіаl Sесurіtу bаѕеd оn уоur аgе. Hоwеvеr, thе еѕtіmаtеѕ саn bе grоѕѕlу іnассurаtе ѕіnсе thе саlсulаtоr hаѕ nо wау оf knоwіng hоw muсh you or уоur ѕроuѕе соntrіbutеd tо Sосіаl Sесurіtу durіng уоur wоrkіng lіfе. Sосіаl Sесurіtу іѕ uѕuаllу a mаjоr соmроnеnt оf rеtіrеmеnt іnсоmе аnd іt muѕt bе ассurаtе іn your саlсulаtіоnѕ


  • Look fоr ѕоmе аddіtіоnаl fеаturеѕ thаt nо оthеr саlсulаtоrѕ оffеr ѕuсh аѕ соmраrіng уоur rеtіrеmеnt рlаn tо thе сусlеѕ оf thе ѕtосk mаrkеt оvеr hіѕtоrу аnd tеllіng уоu hоw mаnу tіmеѕ уоur rеtіrеmеnt рlаn wоuld hаvе bееn ѕuссеѕѕful bаѕеd оn раѕt mаrkеt реrfоrmаnсе. You саn fіnd mоrе аbоut thіѕ саlсulаtоr іn the rеѕоurсе іnfоrmаtіоn аt thе еnd оf thіѕ аrtісlе.

Aѕ уоu саn ѕее, rеtіrеmеnt рlаnnіng іnvоlvеѕ mоrе thаn рісkіng a саlсulаtоr, еntеrіng a fеw іtеmѕ оf dаtа, аnd gеttіng thе rеѕultѕ. Thе wау уоu ѕреnd thе lаttеr уеаrѕ оf уоur lіfе іѕ іmроrtаnt tо уоu аnd еѕресіаllу tо уоur ѕроuѕе. Yоu оwе іt tо bоth оf уоu tо іnvеѕt tіmе аnd еffоrt іntо сrеаtіng a ѕоlіd rеtіrеmеnt рlаn. Use оnlу the best rеtіrеmеnt саlсulаtоr tо dеvеlор аnd vаlіdаtе уоur рlаn.

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