How Much Money Will I Receive?

Now that you know Social Security benefits are an important part of your retirement income, you need to find out how much money you will receive from it so that you can chalk out a plan to make that ideal retirement portfolio. You have always wanted to have a secure future with a steady flow of income. So you need to know how much money you may receive from your Social Security benefits.
 

Apart from the Social Security benefits in the US, there are other income options as well for senior people for their retirement years. Your employer-sponsored retirement savings plans, company pensions, and personal savings can make up a major portion of your income after you retire.

 

Sources of Retirement Income
For average current retiree
Social Security Benefits 39%
Pensions 19%
Savings and Investments 16%
Employment/Other 26%



Retirement age and how much money you will receive

 

The age at which you retire will determine how much money you will receive from your Social Security benefits.

  • If you retire at normal retirement age (between age 65 and age 67 depending on when you were born), you will receive full benefits.
  • If you retire between 62 and 65, you will receive a reduced benefit.
  • If you continue working and delay the receipt of benefits, you will get a bonus for each year of work past normal retirement age, up to age 70. "Delayed retirement credits" will gradually be raised to 8% by 2008 to encourage later retirement.

 

Bonus for Claiming Late Benefits
Year you reach normal retirement age Increase for each year retirement delayed until 70
2000-2001 6%
2002-2003 6.5%
2004-2005 7%
2006-2007 7.5%
2008 and after 8%