Are you feeling anxious about your retirement? Many people worry that they won’t have enough money to sustain their lifestyle when they retire. But the good news is, with proper Social Security planning, you can ensure a worry-free retirement for yourself and your family.
In this article, our goal is to help you understand exactly how Social Security works and ensure that you get the full benefit of these important programs.
What Is Social Security?
Social Security is an important program in the United States that provides retirement, survivor, and disability benefits to qualified individuals. It’s run by the Social Security Administration (SSA), a federal agency funded through payroll taxes paid by working Americans and their employers. This program ensures that individuals who have worked hard throughout their lives can retire comfortably and securely with financial security for themselves and their families.
For many people, Social Security plays an important role when planning for retirement and other life events. One of the key strategies for making the most out of your Social Security benefits is to start planning for retirement early on.
How Social Security Works
Social Security is an insurance program. Workers pay into the program, typically through payroll withholding where they work. Self-employed workers pay Social Security taxes when they file their federal tax returns.
Workers can earn up to four credits each year. For every $1,510 earned in 2022, one credit was granted up to $6,040, or four credits had been achieved.7 It’s $1,640 up to $6,560 in 2023.
Who Can Get Retirement Benefits?
Social Security has features for retirees that other retirement savings plans don’t have.
Workers who have paid into the Social Security system for at least 10 years become eligible for early retirement benefits at age 62. For higher monthly benefits, you must wait until your full retirement age (FRA), between ages 66 and 67 (depending on when you were born. You’ll also receive even more if you delay collecting retirement benefits to age 70, but benefits don’t continue to increase if you wait longer than that.
Get Professional Help
A financial advisor can help you with your Social Security planning and other retirement plans that meet your needs and goals. They can also help you choose the right accounts for your retirement savings.
It’s always a good idea to work with a financial advisor who is experienced in the field. If you would like an experienced professional to help you, our team at Robert Emmer with Silversage can help!
Get in touch with us to learn more about our services.