If you are approaching retirement age, you might be wondering, how much social security retirement will I get? Low Income Relief has put together some of the most important information you need to know about social security retirement benefits that will help you to estimate how much your social security retirement benefit might be.
Before we answer your questions pertaining to the amount of social security retirement you can expect to receive, it is important to understand how social security retirement actually works.
Social security was created in 1935 to address the issue of economic insecurity among the elderly in the United States. Since then, the program has helped retired people live with dignity and security.
Americans pay social security taxes throughout their working lives and earn “credits” toward their social security retirement benefit. In order to receive social security retirement benefits, you must earn at least 40 credits.
So, how do you earn social security credits? While the dollar amount may vary by year, in 2022, the amount of earned income needed to earn one credit is $1,510. It is possible to earn up to four credits per year. This means that as long as you have worked a minimum of 10 years in your life, earning at least roughly $6,040 per year, then you will be eligible to receive some social security. That said, the actual amount of social security retirement you receive depends on the average amount you earn throughout your working years, not the amount of credits you accumulate.
The full retirement age for social security is 67, but it is possible to begin drawing your social security retirement benefits as early as age 62. However, the earlier you begin drawing your social security retirement benefits, the lower your monthly benefit will be.
If you wait until age 70 to begin receiving your social security retirement benefits, the amount you receive per month will be more.
The age at which you can receive your social security retirement benefit may also depend on whether you have worked enough to earn at least 40 credits. If you have not worked enough throughout your lifetime, you may have to continue working until you have earned at least 40 credits, even if you have reached retirement age.
It can be challenging to figure out exactly how much social security retirement you will get without applying for the program directly, but there is a way to estimate roughly how much social security retirement you might get.
The Social Security Administration offers a free online calculator to help you estimate how much social security retirement you will receive each month when you retire. When you enter your earnings for the current year, this calculator automatically estimates how much you may have earned in previous years.
In order to make a more precise calculation of potential social security retirement earnings, you can click on “see the earnings we used”, on the page that displays your initial calculation. There, you can enter your actual earnings for previous years before re-calculating.
More information about the online calculator can be found on the Social Security Administration’s FAQ page.
For most people, social security retirement isn’t quite enough to cover all expenses. It is advised that everyone save for retirement on their own, in addition to relying on social security retirement.
If you still have a few years to go before retirement and are earning taxable income, you can open a traditional IRA or Roth IRA. IRAs are investment accounts that help people save for retirement. They typically have a much higher interest rate than a regular savings account, which means that your money will compound over the years. The Internal Revenue Service has some additional information about these types of investment accounts. Please note that these are private accounts, and not a government program.
If you are working, find out if your employer offers a 401K or 403B retirement investment account. In fact, many employers will actually match your contributions to these accounts, so make sure you are taking advantage of any contribution your employer might make! If you’re not sure if you are entitled to a retirement account at work, ask!
It is also important to keep track of whether you have any retirement accounts or pensions from employers you worked for throughout your lifetime.
Social security retirement is a great program to help seniors with economic security. You can take control of your future by finding out how much social security retirement you’re entitled to!
Save Money and Get Free Stuff!
Catherine Hall
Catherine Hall, LMSW is a therapist at a small group practice in New York City. She earned her master of social work degree at New York University.
Evan Scheerer
Thursday 5th of January 2023
I'm about to turn 62 . I'm working part time. Is it possible to get Soc sec. I'm barely making it now.
Catherine Marucci
Thursday 5th of January 2023
Hi Evan, it is possible to begin drawing your social security retirement benefits as early as age 62. However, the earlier you begin drawing your social security retirement benefits, the lower your monthly benefit will be.