5 Things Retirees Should Know About Social Security Benefits

For most Americans, Social Security will provide a significant portion of their income in retirement.

It’s Important

According to Social Security Administration (SSA) statistics, Social Security benefits account for about 34 percent of retirement income for the average American.¹

One of the biggest mistakes today’s retirees can make is to underestimate the importance of Social Security in their retirement strategies.

In an era of vanishing pensions and volatile markets, Social Security offers government-guaranteed income that isn’t vulnerable to market risk, can’t be outlived, and can provide for your loved ones after your death.

What Is Social Security?

In this context, Social Security is a federal government–sponsored retirement benefit designed to replace some of your income in retirement.

If you or your spouse have worked for at least 40 quarters and paid taxes on the income, you may be eligible to collect benefits in retirement. (Social Security Administration, 2015)

The Social Security landscape changed dramatically in 2015 when Congress abolished several advanced claiming strategies that helped retirees increase lifetime income. The new rules make it more important than ever to make informed decisions when incorporating Social Security into your overall financial strategies.

In this article, we will learn more about your benefits and how to help maximize your household’s lifetime income from Social Security.

Take note of any thoughts or questions you may have as you read so that you can discuss your personal situation with a certified financial planner.