According to Vibes.okdiario , Understanding Social Security benefits is crucial for planning a secure retirement.
The Social Security Administration’s checks and direct deposits are not meant to be your sole source of income in retirement, so it’s important to explore additional income streams while you’re still working. Consider options like a 401(k) retirement savings plan, investments, or a pension to supplement your future Social Security benefits.
Qualifying for Social Security Benefits
To qualify for Social Security, you must have worked in jobs covered by the program and earned at least 40 work credits by the time you reach age 62. Earning the required 40 credits typically takes about 10 years of work. However, working for 35 years can help maximize your benefits, as fewer years of work may lead to reduced payments.
Cost-of-Living Adjustments (COLA)
As inflation rises each year, Social Security payments are adjusted to maintain purchasing power. For example, in 2025, there will be a 2.5% increase in Social Security benefits to account for inflation.
Spousal and Family Benefits
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A lesser-known fact is that your spouse and children may also be eligible for Social Security benefits based on your earnings record. Even if your spouse never worked, they may still qualify for spousal benefits. This applies to both Social Security Disability Insurance (SSDI) and retirement benefits. It’s also possible to file for both retirement and spousal benefits at the same time, depending on your situation.
Planning for Your Future Social Security Payments
The Social Security Administration provides tools to help you estimate your future benefits. The Retirement Calculator can give you an idea of what to expect, especially if both you and your spouse have worked. Another valuable resource is the SSA’s annual statement, which offers insights into your earnings record and benefit estimates.
When reviewing your statement, you’ll notice:
- If you file at age 62, your benefits will be lower.
- Delaying retirement until age 70 allows you to earn delayed credits and increase your monthly payment.
- At Full Retirement Age (FRA), you will receive 100% of your calculated benefits.
Benefits for Divorced Spouses
If you were married for at least 10 years and are now divorced, you may be eligible for Social Security benefits based on your ex-spouse’s work record. The good news is that this will not affect your ex-spouse’s benefits, and they won’t be notified of your application.
Taking the time to understand these essential details about Social Security can help you plan for a more comfortable and secure retirement.
