Social Security and you
Now’s the time to learn about future Social Security benefits.
How much monthly income will I receive from Social Security once I’ve retired, and when can I begin collecting it?
Don’t wait until you’re getting ready to retire to get the answers to these important questions. Social Security is a fundamental part of the planning process and will help you identify income solutions that make sense for you.
When am I eligible for Social Security?
The answer depends on your birth year (see chart). There is a “normal” (or full) retirement age, as well as an age for partial benefits and late benefits.
Some can begin receiving partial Social Security benefits as early as age 62. Or you can delay until as late as age 70, which will increase your monthly benefits and possibly monthly survivor benefits. The ages listed here come from the Social Security Administration.
|At what age am I eligible to receive social security benefits?|
|Birth Year:||1942 or earlier||1943 to 1959||1960 or later|
How much will Social Security cover?
It’s unlikely that Social Security will provide enough to cover all of your retirement expenses. In fact, for a worker earning $40,000 a year, Social Security only replaces about 40 percent of pre-retirement earnings. That’s why it’s vital to have other savings.
How much can I expect from Social Security?
Social Security is different for everyone. Benefits are based on your age at retirement and your top 35 years of earnings. To calculate your Social Security benefit, visit ssa.gov/estimator. To request your annual Social Security statement, visit ssa.gov/mystatement.
How will taxes affect my Social Security?
If you have other sources of retirement income, Social Security benefits may be subject to income taxes. About a third of people who receive Social Security pay income tax on their benefits.
Visit the Social Security website or call 800.772.1213 for more information.
Call a financial professional
More articles from the introductory issue of The Principal Retirement NewsletterSM
- What Will Your Retirement Age Be?
- Five Retirement Income Risks—and How to Help Avoid Them
- Turn Retirement Savings into a Reliable Income Stream
- Healthcare, Medicare and More
- Six Steps for Creating Your Retirement Income Plan
- Retirement Tools and Resources
Download the entire introductory issue (PDF: 860 KB)